US Dollar Targets Fresh Highs versus Canadian Dollar
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USDCAD – Retail FX traders continue to sell into recent US Dollar gains versus the Canadian Dollar, and a contrarian view of crowd sentiment leaves us firmly in favor of buying into USD/CAD gains. Indeed last week we noted that a substantive shift in positions warned that the US Dollar uptrend would resume versus the Loonie.
As long as crowds continue to sell, we will maintain our contrarian bias in favor of buying into USD/CAD rallies.
See next currency section: AUDUSD - Aussie Dollar Forecast Unchanged – Further Losses Likely
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.