Retail Traders Are Selling USD/CAD and Buying Crude Oil

USD/CAD

Recently, the Canadian Dollar has been dropping like crude oil prices against the US Dollar amid a simultaneous drop in crude oil prices. Most times, the CAD correlates with energy prices.

Instead of betting against CAD, retail traders have been selling USD/CAD. Meanwhile, they have been buying crude oil; about 40% of retail traders are net-long USD/CAD. Most traders are biased to the downside, suggesting prices may continue rising.

This is as upside exposure has decreased by 7.72% and 0.99% compared to yesterday and last week, respectively. This combination of current sentiment and recent changes offers a stronger bullish contrarian trading bias for USD/CAD.

USD/CAD faces the 1.3154 – 1.3224 resistance zones. Clearing it would expose peaks last seen from September/November 2020. The latter creates a range between 1.3320 – 1.3421. In the event of a turn lower, eye the near-term rising trendline from August. It can reinstate an upside. Clearing the 1.3052 – 1.3082 support zone exposes 1.2895.

As most traders are biased to the upside, this hints that prices may continue falling. This is as upside exposure increased by 7.69% and 19.38% compared to yesterday and last week, respectively. With that in mind, the combination of positioning data seems to warn that further pain might be in store for crude oil.

This Post Has 2 Comments

  1. Suivre Téléphone

    L’obtention d’informations secrètes peut vous donner un avantage commercial sur vos concurrents, et grâce aux progrès technologiques, l’écoute électronique est plus facile que jamais de nos jours.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.