Forex Analysis: Crowds Extremely Long US Dollar, May Continue Lower

Retail forex trading crowds have bought aggressively into US Dollar (ticker: USDOLLAR) weakness against the Euro and broader counterparts. We’ll take a contrarian view in favor of further USD declines.

View individual currency sections:

EURUSD - Forex Crowds Sell Euro, We Favor Gains

GBPUSD - British Pound Poised for Further Strength

USDJPY - Japanese Yen Bounce Clouds Outlook

USDCHF - Swiss Franc Outlook Bullish

USDCAD - Canadian Dollar Forecast to Strengthen

AUDUSD - Australian Dollar Targets November Highs

ssi_table_story_1_body_Picture_8.png, Forex Analysis: Crowds Extremely Long US Dollar, May Continue Lower

The significant shift in trader sentiment has been enough to force our sentiment-based forex trading strategies to sell the US Dollar across the board. Yet this is with the important caveat that retail crowds are often most net-long at the bottom of the market.

We’ll keep a close eye on whether the USDOLLAR is able to trade above psychologically significant resistance at the 10000 mark. If we do indeed see a USD breakout, it might serve as short-term confirmation of an important reversal.

ssi_table_story_1_body_Picture_7.png, Forex Analysis: Crowds Extremely Long US Dollar, May Continue Lower

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

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3555-0.0023-0.17%
    USDSGD=X
    1.5571-0.0025-0.16%
    EURSGD=X
    1.9677-0.001-0.05%
    GBPSGD=X
    79.0288+0.2283+0.29%
    SGDJPY=X
    5.7252+0.0081+0.14%
    SGDHKD=X
    2.9547-0.0098-0.33%
    SGDMYR=X
    9,852.4531+0.0840.00%
    SGDIDR=X
    4.7982+0.0143+0.30%
    SGDCNY=X
    1.0156+0.0028+0.28%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,283.60+9.20+0.72%
    GCM16.CMX
    17.48+0.18+1.03%
    SIN16.CMX
    83.27-3.96-4.54%
    ^XAU
    2.18-0.01-0.34%
    HGN16.CMX
    44.73+0.95+2.17%
    CLM16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.24-0.02
    ^FVX
    1.78-0.02
    ^TNX
    2.64-0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.42-0.01-1.18%
    N21.SI
    0.3850.0000.00%
    E5H.SI
    0.475+0.025+5.56%
    42R.SI
    0.42+0.02+6.33%
    42W.SI
    3.760.000.00%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.325+0.040+14.04%
    B49.SI
    0.42+0.02+6.33%
    42W.SI
    0.475+0.025+5.56%
    42R.SI
    0.79+0.04+4.64%
    5ER.SI
    0.245+0.010+4.26%
    5UZ.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.20-0.02-11.11%
    L38.SI
    0.172-0.013-7.03%
    AWQ.SI
    0.20-0.02-6.98%
    AWI.SI
    0.595-0.020-3.25%
    N01.SI
    0.196-0.009-4.39%
    I07.SI