Net speculative CAD positions at record low levels, USD will benefit

The net positions of the big hedge funds at CAD reached a record low, last seen a year ago. It seems that hedge funds do not expect oil to have a positive impact on the Canadian economy. A post behind which stands a steel foundation. Only a week ago, Canada had cut its oil output significantly, and together with Kazakhstan and Libya they fully covered OPEC +'s efforts to increase yields.

OPEC +'s efforts are no longer working, oil continues to rise

Net speculative positions in the Canadian dropped to -49,448 contractions compared to -32,799 contracts a week earlier.

Let's look at USD/CAD - D1

The price is in ascending trend after adjustment, reaching a support zone. There are two internal diagonals and a basic horizon supported by 23.6% Fibonacci correction of the main trend. In addition, Sequential counts 9 at the bottom and forms an arrow - the end of the downward movement and the likely start of a new ascending impulse. 50 and 200 SMA remain in bullish formation - the upward trend is in place. DeMarker is near an over-sales area but still does not report a turnaround. An input from the current levels would be appropriate with the SL under both the internal diagonal and 50SMA.

SL: 1.29941

Alternative Scenario: If the price goes below the support area and stays there, the positive scenario will break and more likely to see a decrease to the main diagonal in the area around 1.2880.

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