Forex Analysis: Canadian Dollar Offers Range Trading
USDCAD–Retail forex traders have bought the US Dollar (ticker: USDOLLAR) against the Canadian Dollar, and a contrarian view of crowd sentiment points to further USDCAD declines. Traders have remained net-long USDCAD since it crossed below C$0.9900 in October.
Trade Implications – USDCAD: Our sentiment-based trading strategies have shown mixed results in trading the USDCAD, and in fact one system is currently long while another is short. Such admittedly confusing signals give us little reason to favor large moves in either direction for the mostly range-bound pair. Instead we would advocate using range-trading strategies until further notice.
--- 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.