Forex Flash: CAD at a considerable risk of a short squeeze – TD Securities

According to TD Securities analysts, the broader trend for USD/CAD remains bullish, with a growing potential for a short term pullback with momentum stalling over the past week. "Friday’s CFTC report also showed the net CAD short position had extended massively as of last Tuesday (ahead of the BoC) to the largest position since Q1 2007", wrote analysts Shaun Osborne and Greg Moore, admitting that the CAD is at a considerable risk of a short squeeze.

"On the charts, USD/CAD’s failure to make fresh cycle highs last week sets a solid resistance zone at 1.0335/40", they added, forecasting a possible drift lower in the coming sessions with 1.0240/45 the initial level to watch before stronger support at 1.0215/20.