Our sentiment-based strategies got caught on the wrong side of an important Euro sell-off and US Dollar (ticker: USDOLLAR) bounce, and indeed we see early signs of a substantive USD reversal.
View individual currency sections:
EURUSD – Euro Sees Early Signs of Critical Peak – Time to Sell?
GBPUSD – Forex Trading Crowds Sell GBP as it Fails at Critical Resistance
EURJPY – Yen Likely to Consolidate as Crowds Switch Direction
XAUUSD – Forex Traders Sell Gold – Just Might Work
SPX500 – SPX500 Sentiment Plainly Favors Record Highs
AUDUSD – Australian Dollar Forecast to Test Key Lows
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
The majority of retail forex traders were aggressively long the US Dollar and short the Euro into the recent EURUSD sell-off, and indeed early signs suggest this could be the start of a larger turnaround.
Our sentiment-based strategies have not yet flipped direction, but important technical signs of a USD turnaround are difficult to ignore—we’ll likely look for the next opportunity to buy into Dollar gains.
Download all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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