Canadian Dollar May Rally Further versus US Dollar

Forex retail trading crowds are effectively neutral the US Dollar (ticker: USDOLLAR) against the Canadian Dollar, giving us little reason to expect major rallies or weakness through short-term trading. The broader USD downtrend through the month of June suggests the pair could trade to fresh lows, but we see little compelling reason for a fresh bearish position.

The beginning and end of the month will often bring turns in price, and indeed we may look to July as a potential turning point for the US Dollar.

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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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