– Crowds are extremely short the US currency
– Key forex pairs trade at major support levels
– Next move will likely prove decisive
View individual currency sections:
EURUSD – Euro Surges, but Why Might the Rally Fizzle?
GBPJPY – Japanese Yen Likely to Continue Lower for this Reason
GBPUSD – British Pound at Make-or-Break Levels; What’s Next?
AUDUSD – Australian Dollar Surge will be Put to the Test
XAUUSD – Gold Prices at Potential Breaking Point
SPX500 – SP 500 Needs to Show it can Hold Gains
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
The US Dollar is at critical support, and forex sentiment suggests it might break considerably lower. But what might lead us to buy the Dollar at these levels?
Retail forex crowds have bought aggressively into Greenback weakness versus the Euro, British Pound, and Australian Dollar. We most often use this as a contrarian indicator to price action; if everyone’s buying, we prefer to sell.
But there comes a point where our proprietary data shows crowds are TOO short. Is this it?
Read full currency pair-by-currency pair rundowns in the links above, and follow future updates on retail sentiment and our trading strategies via my e-mail distribution list.
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— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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