Canadian dollar outlook: DOWN.
Jack talked about the Canadian dollar back on January 30. He led off with the heavily bullish positioning among small speculators in Canadian dollar futures.
And he suggested a longer-term trend change could materialize.
We’re sticking with that idea today.
Indeed, bullish positioning has reversed. The Canadian dollar hasn’t reacted proportionately. But we think this move among traders creates the potential firepower “to drive a new trend.”
When Jack produced a Commitment of Traders table a couple weeks ago it showed large specs were 89% bullish and small specs were a whopping 96% bullish! Those numbers have eroded to 63% and 83%, respectively.
Firepower? Quite possibly …