Canadian Dollar Unlikely to Trade Significantly Higher
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USDCAD– Indecisive moves in the USD/CAD have made for similarly mixed retail FX trader sentiment, and current positioning suggests the US Dollar is unlikely to break significantly lower against the Canadian Dollar.
Our Speculative Sentiment Index data shows that exactly 50 percent of open positions are long the USD/CAD—sentiment is neutral. It is notable that the US Dollar has recently broken range lows versus its Canadian counterpart, but the lack of crowd buying gives us little reason to believe the USD/CAD will continue lower. Only a marked turn in crowd sentiment would shift our near-term forecast.
See next currency section: XAUUSD - Gold Price Forecast Remains Bullish 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.