Overly short CAD market takes a big hit

Most moves in the FX market are based on positioning; the market is either getting into positions or getting out.

There was an invaluable comment yesterday in the FXWW chat-room on Reuters Messenger where one of the big banks reported that the USD/CAD bids near 1.1000 had been cancelled. Someone knew something, that’s for sure.

• EUR/CAD is now looking ‘toppy’ again and a test of 1.4900 is likely to develop in coming days;
• USD/CAD has closed back below its 100-dma and looks vulnerable to further stop-loss selling;
• Anyone for a CAD/JPY rollercoaster trade!!!