Forex Analysis: Crowds Point to Major AUD/USD Top, USD/JPY Bottom

DailyFX

Retail forex trading crowds have sold aggressively into US Dollar (ticker: USDOLLAR) strength against the Australian Dollar and Japanese Yen—producing contrarian signal to favor gains.

View individual currency sections:

EURUSD - Euro Forecast Clouded

GBPUSD - British Pound May Fall Further

USDJPY - Japanese Yen Forecast to Fall

USDCHF - Swiss Franc Eyes Gains

USDCAD - Canadian Dollar Forecast to Depreciate

AUDUSD - Australian Dollar Likely Topped

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ssi_table_story_body_Picture_8.png, Forex Analysis: Crowds Point to Major AUD/USD Top, USD/JPY Bottom

The significant shift in trader sentiment has been enough to force our sentiment-based forex trading strategies to go long the US Dollar and short the Japanese Yen across various counterparts.

Those USD-long positions line up well with our bullish forecasts for the Dow Jones FXCM Dollar Index, and indeed we believe Dollar longs remain attractive amidst the clear retail sentiment shift.

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ssi_table_story_body_Picture_7.png, Forex Analysis: Crowds Point to Major AUD/USD Top, USD/JPY Bottom

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

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