<

The majority of retail traders remain long the US Dollar (ticker: USDOLLAR) against the Canadian Dollar, but an important shift in crowd sentiment led our “Tidal Shift” strategy to go long USDCAD from C$.9700.
There are currently 2.15 retail traders long the USDCAD for every one that is short, but that ratio represents a significant moderation from last week. Long interest has dropped 21 percent while short positions more than doubled at +103 percent.
We don’t often advocate joining the crowd as they remain aggressively net-long a given currency pair, but the sharp shift in sentiment serves as important warning of a potential USDCAD bottom.
--- 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;
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
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.