Canadian Dollar Predicted to Weaken
Forex retail trading crowds are roughly flat the US Dollar (ticker: USDOLLAR) against the Canadian Dollar, underlining indecision as the USDCAD exchange rate trades within a narrow range. There are currently 1.2 open orders short for every one long. Said ratio represents a substantial shift from last week when there were actually 1.6 traders long per short, and indeed the shift suggests further gains may be in store.
Yet we would ideally see a sharper shift towards crowd USDCAD selling to take a more aggressively bullish stance on the US Dollar against its Canadian counterpart. Yet our broader US Dollar-bullish bias supports calls for USDCAD strength.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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