Canadian Greenback, USD/CAD, Technical Evaluation, Retail Dealer Positioning – IGCS Replace
- US Greenback has been stabilizing in opposition to the Canadian Greenback
- Retail merchants elevated bearish USD/CAD publicity of late
- This can be a trace that the value pattern might quickly reverse increased
Following a string of losses, the US Greenback seems to be stabilizing in opposition to the Canadian Greenback of late. In response, retail merchants have responded by growing draw back publicity in USD/CAD. This may be seen by having a look at IG Shopper Sentiment (IGCS). This gauge usually acts as a contrarian indicator. With that in thoughts, is the Canadian Greenback about to relinquish a few of its progress in opposition to the Buck?
USD/CAD Sentiment Outlook – Bullish
The IGCS gauge reveals that about 64% of retail merchants are net-long USD/CAD. Because the majority of them stay biased increased, this implies that costs might proceed decrease down the street. Nonetheless, draw back publicity has elevated by 2.08% and 18.47% in comparison with yesterday and final week, respectively. With that in thoughts, current adjustments in positioning trace that the present value pattern might quickly reverse increased.
Canadian Greenback Day by day Chart
With that in thoughts, what are key ranges to look at for in USD/CAD trying forward? Instant resistance seems to be the mixture of a near-term falling trendline from Might and the 1.3226 inflection level. A breakout increased would expose the July seventh excessive of 1.3387. That stated, even a push upwards in the direction of this level won’t be sufficient to overturn the broader bearish technical bias.
That’s being maintained by one other falling trendline, which is from March – see chart beneath. Breaking above this level would supply a stronger bullish bias, particularly if retail merchants proceed to extend bearish USD/CAD publicity. In any other case, a flip decrease from right here locations the give attention to rapid assist. That may be a vary between 1.3093 and 1.3139. Clearing below locations the give attention to the September low of 1.2954.
Chart Created in Buying and selling View
— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com
DailyFX gives foreign exchange information and technical evaluation on the tendencies that affect the worldwide forex markets.