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
    1.3504-0.003-0.22%
    USDSGD=X
    1.4947-0.0008-0.05%
    EURSGD=X
    1.7797-0.007-0.39%
    GBPSGD=X
    77.5150-0.268-0.34%
    SGDJPY=X
    5.7416+0.0122+0.21%
    SGDHKD=X
    3.0013-0.0115-0.38%
    SGDMYR=X
    9,692.4043-22.8154-0.23%
    SGDIDR=X
    4.9324+0.0051+0.10%
    SGDCNY=X
    1.0164+0.0031+0.31%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,338.00+11.30+0.85%
    GCQ16.CMX
    20.33+0.33+1.68%
    SIU16.CMX
    107.59+4.59+4.46%
    ^XAU
    2.21+0.03+1.17%
    HGU16.CMX
    42.10+0.18+0.43%
    CLU16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.10-0.04
    ^FVX
    1.51-0.05
    ^TNX
    2.23-0.05
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.36-0.01-4.00%
    E5H.SI
    0.585-0.015-2.50%
    Z59.SI
    0.490.00+1.03%
    5TP.SI
    4.28-0.03-0.70%
    Z74.SI
    0.335-0.010-2.90%
    5ME.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.43+0.03+7.50%
    567.SI
    0.22+0.02+7.32%
    B7K.SI
    0.205+0.011+5.67%
    S9B.SI
    3.56+0.16+4.71%
    H15.SI
    0.595+0.025+4.39%
    AZA.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.21-0.07-25.00%
    BQN.SI
    0.103-0.030-22.56%
    BEZ.SI
    0.116-0.020-14.71%
    Y06.SI
    0.12-0.01-7.69%
    T13.SI
    0.30-0.03-10.45%
    BBP.SI