Canadian Dollar Trading Bias Moderates
USDCAD - The ratio of long to short positions in the USDCAD stands at 2.89 as approximately 74% of traders are long. Yesterday the ratio was 1.97; 66% of open positions were long. In detail, long positions are 12.9% higher than yesterday and 2.7% below levels seen last week. Short positions are 22.8% lower than yesterday and 2.1% above levels seen last week.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the USDCAD may continue lower. Current SSI is higher than yesterday and lower from last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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