Sentiment Remains Extremely One-Sided – and Wrong – in USD/CAD
Why and how do we use the SSI in trading? View our video and download the free indicator here.
USDCAD - The ratio of long to short positions in the USDCAD stands at -3.16 as 24% of traders are long. Yesterday the ratio was -3.29; 23% of open positions were long. Long positions are 1.2% lower than yesterday and 4.9% above levels seen last week. Short positions are 5.1% lower than yesterday and 5.0% below levels seen last week. Open interest is 4.2% lower than yesterday and 10.8% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the USDCAD may continue higher. The trading crowd has grown less net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: AUD/USD - Recent Flip in Sentiment Provides Little Clarity for the Australian Dollar
--- Written by Christopher Vecchio, Currency Strategist
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