Furthermore, oil prices have been a key factor behind the performance of the Canadian Dollar throughout the week. As oil is on course for its largest weekly drop of the year, USD/CAD remains supported on dips.
Major currency pairs will likely trade in ranges until today’s jobs report, and next week’s US CPI report provides some clarity. Meanwhile, on the technical side, topside resistance is situated at 1.2930-50, while support sits at 1.2790.
Data shows 57.40% of traders are net-long, with the ratio of traders long to short at 1.35 to 1. The number of traders net-long is 2.61% lower than yesterday and 1.02% lower from last week, while the number of traders net-short is 8.86% lower than yesterday and 2.86% higher from last week.
The market seems unsure as to the future of USD/CAD. However, they are leaning towards pessimism. Positioning today appears more net-long compared to yesterday but lesser than last week. The current sentiment and recent changes provide traders with a mixed USD/CAD trading bias.