Euro, Australian Dollar, Gold, and Japanese Yen are Our Top Trades

DailyFX

- Euro poised to hit fresh highs, Aussie Dollar targets continued lows

- Our sentiment-based trading strategies have done well in strong Euro, AU$, Yen trends

- Commodity markets remain at further risk of declines as gold sentiment at major extremes

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

View individual currency sections:

EURUSD - Euro Rallies Seem a Little too Obvious

GBPUSD - British Pound May Offer Attractive Opportunity to Buy the Dip

USDJPY - Japanese Yen Targets Further Lows

Gold - Gold Prices Poised to Fall Even Further

SPX500 - S&P 500 Rally in December far from Guaranteed

AUDUSD - Australian Dollar Sees No Relief in Sight

Weekly Summary of Forex Trader Sentiment and Changes in Positioning

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ssi_table_story_body_Picture_5.png, Euro, Australian Dollar, Gold, and Japanese Yen are Our Top Trades

Retail forex traders have never been more short Euro and are extremely long the Australian Dollar and Gold prices. We’re watching these currencies for near-term trade opportunities.

Past performance is not indicative of future results, but our sentiment-based trading strategies have done well trading the Euro higher and the Australian Dollar lower. And indeed trading into current trends may be the best bet as major reversals seem unlikely through quiet year-end trading.

There’s obviously risk of short-term sentiment extremes in the Euro, Aussie Dollar, Gold prices, and other key markets. Yet those extremes are only clear in hindsight, and a contrarian view of crowd sentiment leaves us positioned for a continuation in several strong FX trends.

See specific US Dollar forecasts in the sections above, and sign up for future e-mail updates via this author’s e-mail distribution list.

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ssi_table_story_body_Chart_1.png, Euro, Australian Dollar, Gold, and Japanese Yen are Our Top Trades

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ssi_table_story_body_Chart_2.png, Euro, Australian Dollar, Gold, and Japanese Yen are Our Top Trades

ssi_table_story_body_Picture_8.png, Euro, Australian Dollar, Gold, and Japanese Yen are Our Top Trades

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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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