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
    1.3947+0.0059+0.43%
    USDSGD=X
    1.5776+0.0063+0.40%
    EURSGD=X
    2.0255+0.014+0.70%
    GBPSGD=X
    80.3975-0.6826-0.84%
    SGDJPY=X
    5.5837-0.0267-0.48%
    SGDHKD=X
    2.9835+0.0038+0.13%
    SGDMYR=X
    9,661.6113-66.5723-0.68%
    SGDIDR=X
    4.7109-0.0237-0.50%
    SGDCNY=X
    0.9911+0.0014+0.14%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,243.10-4.70-0.38%
    GCJ16.CMX
    15.72-0.08-0.50%
    SIH16.CMX
    58.76+3.36+6.06%
    ^XAU
    2.010.00+0.05%
    HGH16.CMX
    27.33+1.12+4.27%
    CLH16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.11-0.04
    ^FVX
    1.64-0.06
    ^TNX
    2.50-0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.3050.0000.00%
    N21.SI
    1.605-0.005-0.31%
    MC0.SI
    3.55+0.01+0.28%
    Z74.SI
    2.84-0.01-0.35%
    C31.SI
    0.360.000.00%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.36+0.07+22.03%
    Y35.SI
    62.06+7.42+13.58%
    NF6.SI
    34.85+3.03+9.52%
    NF4.SI
    0.39+0.03+8.33%
    C13.SI
    0.41+0.03+7.89%
    AXJ.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.225-0.055-19.64%
    5SY.SI
    0.25-0.03-10.71%
    BCD.SI
    0.90-0.10-10.00%
    AWM.SI
    0.32-0.03-9.86%
    MN5.SI
    0.26-0.03-8.77%
    S29.SI