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Canadian Dollar Forecast to Strengthen

Canadian Dollar Forecast to Strengthen

David Rodriguez, Head of Product
ssi_usd-cad_body_Picture_11.png, Canadian Dollar Forecast to Strengthen

Retail forex trading crowds have bought aggressively into US Dollar (ticker: USDOLLAR) declines against the Canadian Dollar. The build in long positions gives us a contrarian bearish bias and keeps us focused on further USDCAD declines. In fact, total long interest has risen a significant 29 percent from last week while short positions are down 14 percent.

Extremely one-sided sentiment warns that the USDCAD may fall further through short-term trading. Focus remains on key USDCAD lows as a break below could accelerate US Dollar losses and Canadian Dollar gains.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to drodriguez@dailyfx.com

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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