Canadian Dollar Forecast to Break Lower
USDCAD – Forex trading crowds have recently turned their most aggressively net-short the US Dollar (ticker: USDOLLAR) against the Canadian Dollar since the pair rallied towards the C$1.0500 mark through late 2011. Such one-sided sentiment gives strong contrarian signal that the USDCAD could continue to register fresh peaks.
In fact, our forex sentiment-based trading strategies are currently long the USDCAD as the pair breaks to fresh peaks. We remain focused on the 2012 USDCAD high at C$1.0318 and bullish as long as price remains key support at $1.0150.
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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