USDCAD –Retail forex trading crowds have increased their net-long US Dollar (ticker: USDOLLAR) position against the Canadian Dollar, and a contrarian view of crowd sentiment favors USDCAD declines.
Crowd net positioning is now at its most bullish since the pair traded below C$0.9900 in October, and such one-sided sentiment warns that the pair could continue lower.
It will be important to watch USDCAD technical support at C$0.9717, but current price momentum and trader sentiment favors further losses.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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