Even though the US dollar weakened significantly, the Australian, New Zealand and Canadian dollars all ended lower against the greenback. This move represents a sharp intraday reversal for 2 of these pairs which had at one point hit new multi-decade highs intraday.
According to Antonio Sousa, the FXCM SSI indicates that for the first time since September, our most speculative traders did not add to their long USDCAD positions hoping for the bottom. In a trending market, this subset of investors frequently get caught on the wrong side of the trade. With today’s fresh record low, open positions plummeted and longs fell 19 percent since yesterday. When traders finally throw in the towel and give up trying to pick a bottom that is frequently THE actual bottom so, 0.9059 could be the bottom in USDCAD.