USD/CAD Promote-Off Continues, Retail Merchants Improve Quick Bets

USD/CAD slides decrease on US dollar weak point, whereas retail merchants improve their USD/CAD quick bets

Canadian Greenback Value, Chart, and Evaluation

  • Brent crude oil eyes a brand new three-year excessive.
  • USD/CAD merchants improve quick bets.

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The US greenback continues to lose floor in opposition to its Canadian counterpart with the pair touching a brand new three-month low earlier within the session.The current pattern decrease is dominated by pink candles, producing decrease highs and decrease lows, because the pair continues to maneuver in direction of a multi-year low across the 1.2000 stage.

One of many drivers of the current transfer, the price of oil, continues to direct the pair with Brent crude beginning to consolidate Monday’s sell-off. The transfer larger from the late-August low round $65/bbl. has been relentless and it appears possible that oil larger costs might be seen within the coming weeks, particularly with the winter season approaching. Analysts count on the oil provide/demand to proceed as economies throughout the globe proceed to reopen, whereas OPEC+ retains provide restricted going into the top of the yr.

The every day USD/CAD chart reveals a transparent downtrend began off the September 20 excessive with any pull-backs offered into it. Numerous ranges of assist have been damaged with ease, whereas the straightforward shifting averages are additionally throwing out destructive alerts. The 20-dsma has dropped by the 50-dsma and is near breaking the 200-dsma, whereas USD/CAD is now again under the longer-dated easy shifting common, including to destructive sentiment. The following ranges of assist are round 1.2300 and 1.2250.

Canadian Greenback (USD/CAD) Every day Value Chart October 19, 2021

Canadian Dollar Forecast: USD/CAD Sell-Off Continues, Retail Traders Increase Short Bets

Retail dealer information present 73.21% of merchants are net-long with the ratio of merchants lengthy to quick at 2.73 to 1. The variety of merchants net-long is 0.60% decrease than yesterday and seven.22% decrease from final week, whereas the variety of merchants net-short is 26.57% larger than yesterday and 14.20% larger from final week.

We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests USD/CAD costs could proceed to fall.But merchants are much less net-long than yesterday and in contrast with final week. Latest adjustments in sentiment warn that the present USD/CAD worth pattern could quickly reverse larger regardless of the very fact merchants stay net-long.

What’s your view on the USD/CAD – bullish or bearish?? You possibly can tell us by way of the shape on the finish of this piece or you’ll be able to contact the creator by way of Twitter @nickcawley1.

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