[B]USD[/B][B]/CAD Ratio: 1.98
[/B][B]Signal: Bearish[/B]
USDCAD
1.65
[B]1.98[/B]
66%
6.26%
Bearish
[B]USDCAD[/B] – USDCAD positioning continues to hold off from its first negative sentiment flip since November of 2006. The pair’s Speculative Sentiment Index ratio jumped to 1.98 today with 66% of retail traders long. The details of the report reveal that longs grew a modest 6.1% since yesterday and 12.1% from last Thursday. Shorts on the other hand grew 7.5% from Wednesday and are 3.7% weaker than levels last week. Net open interest was only 5.2% higher than last week and is 5.3% above its monthly average. The steady, positive reading points to further downside potential from USDCAD; however, these historically modest sentiment numbers are certainly being depressed by the underlying’s broad range and suggest the market is determining whether this is a long-term bottom or extended congestion period before the next leg down.