The US Dollar likely set a major bottom versus the Euro, British Pound, and Australian Dollar. How might we trade it?
View individual currency sections:
EURUSD – Forex Moves and Sentiment Confirm Major EURUSD Top
GBPUSD – British Pound Forecast to Trade Lower versus US Dollar
USDJPY – Japanese Yen Likely to Hit Fresh Peaks versus Euro, GBP
XAUUSD – Gold Remains Bright Spot versus the Resurgent US Dollar
SPX500 – SP 500 at Make or Break Levels – Is this the Top?
AUDUSD – Australian Dollar Turnaround is the Real Deal
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
Our proprietary Speculative Sentiment Index data shows that retail forex traders have sold aggressively into recent US Dollar strength versus the Euro, British Pound, and Australian Dollar. We use the SSI as a contrarian signal to price action; if crowds are selling, we look to buy.
Combined with a potentially significant shift in forex market conditions, this is reason enough to call for further Greenback strength.
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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