[B]USD/CAD Ratio: 1.06
[/B][B]Signal: Bearish[/B]
[B]Currency[/B] [B]Last Week[/B] [B]Present*[/B] [B]% Long[/B] [B]% Change in Positions Outstanding[/B] [B]Signal[/B] USDCAD 1.22 [B]1.06[/B] 51% -0.89% Bearish
[B]USDCAD[/B] – It has finally happened. USDCAD’s Speculative Sentiment ratio finally flipped to a net negative reading for the first time since November of 2006. The flip occurred early this morning; and though the sentiment gauge had not maintained the negative figure into the afternoon, the milestone was nonetheless marked. Standing at 1.06 during the US session, the sentiment gauge reflected a modest skew with only 51% of traders holding long positions. This relative extreme for the long-positive USDCAD sentiment gauge comes as underlying price action has tested a range high of 1.0350 for the third time in five months, suggesting yet another dollar-favorable breakout may be developing. The indicator’s details show that, despite the ratio’s move towards a flip, there have been only modest changes to positioning. Long positions have eased 0.4% since yesterday and are 8.4% lower on the week. Short positions were unchanged since yesterday and 8.6% higher from last Thursday. Despite the retail communities proclivity for range trading, open interest is actually 3.2% lower on the week and 6.7% below the monthly average.