US Dollar Shows Signs of Life as Crowds Sell Bounce

DailyFX

EURUSD – Euro Forecast Shifts as Retail Crowds Capitulate

GBPUSD – Crowd Sentiment Favors British Pound Gains

USDJPY – Japanese Yen May have Topped versus US Dollar

USDCHF – Swiss Franc Outlook Turns Bearish

USDCAD – Canadian Dollar Forecast to Decline

GBPJPY – British Pound Bias Remains Bearish versus Yen

Retail forex speculators remain long the US Dollar (ticker: USDOLLAR) against the Euro and other currencies, but an important shift in sentiment serves as early warning of a potential Dollar turnaround.

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ssi_table_story_body_Picture_5.png, US Dollar Shows Signs of Life as Crowds Sell Bounce

We’ve recently called for continued US Dollar losses across the board as retail crowds bought into Greenback weakness. Our FXCM Execution desk data shows that the majority of traders remain long, but many are actually now selling into the Dollar bounce.

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ssi_table_story_body_Picture_6.png, US Dollar Shows Signs of Life as Crowds Sell Bounce

Our sentiment-based trading strategies have begun buying the US Dollar on the first signs of turnaround, but it will be critical to watch whether the USD can close above significant resistance versus the Euro and other major pairs.

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

To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to drodriguez@dailyfx.com;

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