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Dollar Plummets but Little Relief in Sight as Strategies Say ’Sell’

Greenback targets fresh lows as forex crowds buy weakness

Japanese currency similarly poised to fall versus Australian, European counterparts

– Forecasts would only change on a substantial swing in sentiment

View individual currency sections:

EURUSD – Euro Targets Further Gains As Long as This Remains True

USDJPY – US Dollar Might Fall Faster than Japanese Yen

GBPUSD – British Pound Poised to test Major Highs

AUDUSD – Australian Dollar Targets Key 2012 Lows

XAUUSD – Gold Prices Might Finally Resume Uptrend

SPX500 – SP 500 Looks Unstoppable at These Levels

Weekly Summary of Forex Trader Sentiment and Changes in Positioning

The US Dollar has thundered to fresh lows following a critical FOMC interest rate decision, but why might it continue lower?

Retail forex crowds continue buying aggressively into Dollar weakness, and our contrarian view on crowd sentiment leaves us plainly in favor of fresh USD lows. Indeed, our sentiment-based Momentum2 system has had an exceptional week going against the crowd and selling Greenback weakness.

What could change that? Only a substantial swing in retail forex sentiment would flip our trading biases.

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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