Canadian Dollar Forecast to Hit Fresh Peaks
USDCAD – Retail trading crowds are aggressively long the US Dollar (ticker: USDOLLAR) against the Canadian Dollar as the USDCAD breaks yearly lows. Indeed, our SSI data shows that traders are the most extremely net-long since the pair tested C$0.9600 in July, 2011. It was at that point that we saw a modest short-term bounce, but the next move saw the USDCAD break significantly lower and we could easily see a repeat through upcoming price action.
Our fundamental and technical Canadian Dollar forecasts likewise call for strength, and we will look for near-term opportunities to sell a USDCAD bounce in expectations of fresh lows.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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