FOREX ANALYSIS: Canadian Dollar Forecast to Depreciate
The ratio of long to short positions in the USDCAD stands at -1.17 as approximately 46% of traders are long. In detail, long positions are 4.6% lower than yesterday and 10.8% below levels seen last week. Short positions are unchanged from yesterday yet 20.7% 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 short gives signal that the USDCAD may continue higher. Current SSI is lower than yesterday and lower from last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.