US Dollar Likely to Hit Fresh Highs versus Canadian Dollar
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USDCAD– Retail forex traders continue selling aggressively into US Dollar gains versus the Canadian Dollar, and heavily one-sided sentiment warns that the USD/CAD exchange rate may continue onto fresh highs.
Our data shows that open USD/CAD short positions outnumber those long by a substantive 2.9 to 1—nearly 75 percent of all retail open positions are short. Such a large imbalance can often coincide with important crowd sentiment and price extremes, but by definition these extremes are only clear in hindsight. Until we see a turn in crowd positioning we see little reason to abandon our USD/CAD-bullish trading bias.
See next currency section:AUDUSD - Australian Dollar Remains a Buy Until this Changes
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.