Forex Analysis: Canadian Dollar Breakdown Should be Sold
USDCAD–Retail forex traders are now net-short the US Dollar (ticker: USDOLLAR) against the Canadian Dollar for the first time since the pair last traded above parity, and the sharp shift in forex trader sentiment warns that the pair may break fresh highs.
Trade Implications – USDCAD: Two of our retail sentiment-based trading strategies have recently bought the USDCAD from C$0.9868 and C$1.0002. Our senior technical strategist believes that the USDCAD trend is now up, and weakness should be bought with eventual target of C$1.0250.
--- 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.