US Dollar Remains in Control versus Canadian Dollar
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USDCAD– Our retail forex trader data shows that the majority of traders remain net-short the US Dollar versus the Canadian Dollar, and a contrarian view of crowd sentiment leaves us in favor of buying into USD/CAD strength.
It is worth noting that positioning is roughly unchanged since last week, and ideally we would see fresh retail selling so as to maintain conviction in our contrarian calls for USD/CAD gains. Yet we would need to see a major shift in sentiment to call for a substantive US Dollar pullback versus its Canadian counterpart.
See next currency section:AUDUSD - Australian Dollar Forecast Calls for Further Weakness
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.