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
    1.3499+0.0014+0.10%
    USDSGD=X
    1.4447-0.0035-0.25%
    EURSGD=X
    2.0101+0.0002+0.01%
    GBPSGD=X
    88.3991-0.0251-0.03%
    SGDJPY=X
    5.7416-0.0056-0.10%
    SGDHKD=X
    2.6928+0.0022+0.08%
    SGDMYR=X
    9,606.6396-31.4873-0.33%
    SGDIDR=X
    4.5927-0.0047-0.10%
    SGDCNY=X
    1.0447+0.0028+0.27%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,197.70+4.00+0.34%
    GCM15.CMX
    16.05+0.16+1.01%
    SIK15.CMX
    71.20+0.26+0.36%
    ^XAU
    2.72-0.01-0.51%
    HGK15.CMX
    57.70-0.18-0.31%
    CLM15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.32+0.03
    ^FVX
    1.90+0.05
    ^TNX
    2.57+0.07
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.23+0.01+4.55%
    5GB.SI
    0.2950.0000.00%
    5WA.SI
    0.87-0.01-1.69%
    N21.SI
    4.35-0.06-1.36%
    Z74.SI
    1.045+0.020+1.95%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.275+0.035+14.58%
    5TS.SI
    0.295+0.030+11.32%
    G10.SI
    0.36+0.04+10.77%
    K29.SI
    0.535+0.050+10.31%
    P9D.SI
    0.114+0.008+7.55%
    J8O.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.20-0.05-20.00%
    5WD.SI
    0.11-0.02-15.38%
    5GF.SI
    0.225-0.030-11.76%
    41H.SI
    0.181-0.017-8.59%
    40N.SI
    0.72-0.06-7.69%
    AUE.SI