Canadian Dollar Rally is Set to Last
Why and how do we use the SSI in trading? View our video and download the free indicator here
USDCAD– A remarkable shift in retail forex trader positions warns that the US Dollar may continue lower versus the resurgent Canadian Dollar. Our data shows there are currently 1.3 open USD/CAD long positions for every 1 short, and a contrarian view of crowd sentiment leaves us in favor of selling into USD/CAD declines.
Indeed, last week we noted the likelihood that the US Dollar set a top versus its Canadian counterpart; the further flip in retail FX sentiment acts as further confirmation. We will maintain our bearish trading bias until further notice.
See next currency section:AUDUSD - Australian Dollar Outlook Uncertain until this Changes
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.