Canadian Dollar Forecast to Break towards C$1.05
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 recently went short the USDCAD but were quickly taken out of the trade as the pair pushed higher. Our Senior Technical Strategist favors buying US Dollars against the Canadian Dollar as long as it remains above C$1.0150, and one-sided sentiment supports calls for strength.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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