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

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at https://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

--

Did you know that you can get stories like this on the Yahoo mail app?
Download it here.
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3510-0.0008-0.06%
    USDSGD=X
    1.4901+0.0059+0.40%
    EURSGD=X
    2.1023+0.0004+0.02%
    GBPSGD=X
    90.8864+0.64+0.71%
    SGDJPY=X
    5.7382+0.0032+0.06%
    SGDHKD=X
    2.8244+0.0219+0.78%
    SGDMYR=X
    9,890.4580+1.415+0.01%
    SGDIDR=X
    4.5962+0.0049+0.11%
    SGDCNY=X
    1.0123+0.0014+0.14%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,165.20+0.60+0.05%
    GCV15.CMX
    15.59-0.03-0.21%
    SIZ15.CMX
    62.65+1.28+2.08%
    ^XAU
    2.53-0.10-3.78%
    HGU15.CMX
    54.13-2.80-4.92%
    CLQ15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.65-0.06
    ^FVX
    2.39-0.02
    ^TNX
    3.190.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.168+0.012+7.69%
    5DN.SI
    0.295-0.005-1.67%
    5WA.SI
    0.172-0.020-10.42%
    5GB.SI
    0.715-0.035-4.67%
    N21.SI
    0.905-0.005-0.55%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.335+0.085+34.00%
    Y06.SI
    0.335+0.030+9.84%
    UQ4.SI
    0.245+0.020+8.89%
    H64.SI
    0.595+0.045+8.18%
    AWK.SI
    0.168+0.012+7.69%
    5DN.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.192-0.048-20.00%
    MR8.SI
    0.091-0.018-16.51%
    5PO.SI
    0.151-0.019-11.18%
    K22.SI
    0.172-0.020-10.42%
    5GB.SI
    1.265-0.130-9.32%
    T14.SI