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USDCADβ Retail FX traders remain aggressively short the US Dollar versus the Canadian Dollar, and until this changes we will maintain our contrarian calls for further USD/CAD strength.
In fact our data shows that aggregate positioning was recently at its most net-short USD/CAD since at least 2011. Itβs possible that sentiment has reached an important extreme, but this is only obvious in hindsight. We would need to see a material shift towards crowd buying before calling for a meaningful turnaround.
See next currency section: AUDUSD - Australian Dollar Forecast Turns Clearly Bearish
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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