Part 1.

The current situation with the Canadian Dollar is mixed because, for several currencies, such as the Euro and the Australian dollar, the Canadian is significantly strengthened this year, which substantially affects the positions of large funds and dealers on this asset.

In many respects, strengthening the position of the asset is connected with fundamental factors, but the growth of the attractiveness of the Canadian also pushes prices up on the wave of speculation, which slightly increases the dynamics of the asset.

pic. 1. Graph of the currency ratio of EUR / CAD of 01/01/2018-09-04.2018

pic. 2. Graph of the currency ratio AUD / CAD of 01.01.2018-09.04.2018

An exception for the Canadian is his southern neighbor - the US dollar, the main reason is a stronger macroeconomic environment, as well as increased speculative demand for the US dollar due to instability in developing regions.

Also, the dollar rate is affected by the rate-raising policy pursued by the FRS.

pic. 3. Graph of the currency ratio of USD / CAD of 01.01.2018-09.04.2018

Based on the above, you can make the following strategy for this week for CAD.

The overall strengthening of CAD is currently approaching the peak of demand, as shown by data on large funds and currency dealers. However, the currency still has a small margin of safety relative to the Euro.

EUR / CAD

pic. 4. Graph of the EUR / CAD currency ratio with the indicator of the position of managing large participants of the currency market of 01/01/2018 - 09/04/2018.

As can be seen in pic. 4, the EUR / CAD price chart has an inverse relationship to the net position of the fund managers, due to the fact that the demand for CAD is expressed in a decrease in the value of the ratio.

The last month showed a significant increase in demand from funds to the Canadian dollar. Which directly led to the fact that it has grown significantly relative to the Euro.

pic. 5. Graph of the EUR / CAD currency ratio with the indicator of the position of managing large participants of the currency market of 08.03.2018 - 09.04.2018.

According to the data, it is clear that this week is also likely to have a pronounced bullish character for the EUR / CAD ratio.

So the strategy for the next two weeks is the basis of long positions.

Have successful bidding!

In the nearest future, you can expect the continuation of the article on AUD / CAD, USD / CAD.