– Dollar surges versus Yen and a substantial shift in forex sentiment favors gains
– Greenback forecasts are mixed, however, and further losses seem likely versus other pairs
– Our sentiment-based trading systems are positioned for Yen and Australian Dollar selling
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View individual currency sections:
EURUSD – Euro Likely to Trade to Fresh Highs Versus Dollar
GBPUSD – British Pound Forecast Calls for Strength
USDJPY – Dollar Has Broken ¥100 – Why are Further Gains Likely?
XAUUSD – Gold Prices Forecast to Fall Further
SPX500 – It Seems Needlessly Dangerous to Sell SP 500 Here
AUDUSD – Australian Dollar Weakness Sees No End in Sight
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
The USDJPY has surged above ¥100, and a substantial shift in crowd sentiment favors further gains. Yet the USD remains at risk versus the Euro and British Pound.
Our retail FX sentiment-based strategies have bought the US Dollar versus the Japanese Yen and Australian Dollar (long USDJPY and short AUDUSD) while selling it versus the Euro and British Pound (long EURUSD and GBPUSD). The admittedly mixed implications suggest some of the best trades might be in the cross rates.
Past performance is not indicative of future results, but our purely sentiment-based Momentum2 strategy has had an impressive run trading the EURAUD and select JPY cross rates.
See specific US Dollar forecasts in the sections below, and sign up for future e-mail updates via this author’s e-mail distribution list.
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— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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