US Dollar Remains in Control versus Canadian Dollar
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USDCAD– Retail forex traders remain heavily short the US Dollar versus the Canadian Dollar, and a contrarian view of crowd sentiment leaves us watching for further USD/CAD gains.
It is worth noting that both sentiment and price have remained fairly steady in the past four weeks of trading—ideally we would see fresh USD/CAD selling in order to call for gains. Yet we would need to see a substantive shift in positioning to call for a meaningful US Dollar pullback versus its Canadian counterpart.
See next currency section: AUDUSD - Australian Dollar Positions at Multi-Year Extremes, Rallies 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.