[B]USD[/B][B]/CAD Ratio: 2.83
[/B][B]Signal: Bearish[/B]
[B]USDCAD[/B] – Unlike most of the other dollar denominated majors, USDCAD is not threatening any major technical levels with its recent price action. However, the presence of parity has certainly generated trading activity among the retail group. This past week, volatility in the greenback drove the pair down to test the frequent 1.0000 level; and while direction has been relatively absent, positioning has actually developed to a relative extreme. With spot testing six week lows, the bias in positioning has reached equivalent highs. This week the ratio rose to 2.83 as 74% of the retail sector is now looking for a rebound. Putting this level into perspective, this is just another step in a steady shift to a positioning extreme following last week’s 2.13 reading and 1.79 figure the period before that. In detail, longs have been relatively inactive, increasing their positions only 0.1% since yesterday but rising 9.3% from last Thursday. From the other side of the trade, shorts were unchanged from Wednesday but 9.4% weaker than last week’s levels. Overall, open interest grew 7.0% since last Thursday and is 4.8% above the monthly average.