Canadian Dollar Breakout To Gather Pace
USDCAD - The ratio of long to short positions in the USDCAD stands at -1.52 as nearly 60% of traders are short. Yesterday, the ratio was at -1.33 as 57% of open positions were short. In detail, long positions are 4.5% lower than yesterday and 5.7% weaker since last week. Short positions are 9.4% higher than yesterday and 28.1% stronger since last week. Open interest is 3.4% stronger than yesterday and 2.5% above its monthly average. The SSI is a contrarian indicator and signals more USDCAD gains.
The retail trading crowd has turned bearish on the USDCAD as they look for a short-term pullback in the exchange rate, but the pair looks poised to push higher as it finally breaks out of the range-bound price action from earlier this year. Indeed, the USDCAD looks to be eying the 1.02 figure as the upward trend continues to gather pace, but we will keep a close eye on the RSI as it flirts with overbought territory.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Song, Currency Analyst
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