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.

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
    1.3731-0.0033-0.24%
    USDSGD=X
    1.4729-0.017-1.14%
    EURSGD=X
    2.0379+0.0003+0.01%
    GBPSGD=X
    87.3575+0.0682+0.08%
    SGDJPY=X
    5.6463+0.012+0.21%
    SGDHKD=X
    2.6973-0.0006-0.02%
    SGDMYR=X
    9,527.0049+10.5078+0.11%
    SGDIDR=X
    4.5177+0.0063+0.14%
    SGDCNY=X
    1.0459-0.0073-0.69%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,186.60+1.80+0.15%
    GCJ15.CMX
    16.62-0.05-0.29%
    SIK15.CMX
    65.39-1.13-1.69%
    ^XAU
    2.74-0.04-1.47%
    HGK15.CMX
    48.27-0.41-0.84%
    CLK15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.38-0.04
    ^FVX
    1.93-0.03
    ^TNX
    2.54-0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.2850.0000.00%
    5WA.SI
    0.172+0.002+1.18%
    5GB.SI
    0.131-0.003-2.24%
    E13.SI
    0.183+0.016+9.58%
    A50.SI
    0.425-0.010-2.30%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.15+0.04+36.36%
    5IF.SI
    0.148+0.018+13.85%
    L10.SI
    0.155+0.018+13.14%
    K14.SI
    0.139+0.016+13.01%
    P36.SI
    0.169+0.019+12.67%
    5PI.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.11-0.03-23.61%
    5GF.SI
    0.22-0.03-12.00%
    O08.SI
    0.22-0.03-10.20%
    5WJ.SI
    0.116-0.013-10.08%
    V69.SI
    0.29-0.03-9.38%
    40U.SI