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US Dollar Forecast To Bounce off of Range Lows
Thursday, 19 November 2009 15:26 GMT  |  Written by David Rodriguez
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EURUSD – Euro Forecast Flips to Bearish Against Dollar
GBPUSD – British Pound Forecast Points to Short-term Pullback
USDJPY – Japanese Yen Likely to Rally Further versus US Dollar
USDCHF – Swiss Franc Outlook Turns Bearish
USDCAD – Canadian Dollar Likely to Pull Back against US Dollar
GBPJPY – British Pound Forecast to Decline versus Japanese Yen

 

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Our sentiment-based forex trading strategies may soon go long the US Dollar versus the British Pound and other key counterparts, as a sudden shift in sentiment points to further near-term gains for the US currency. Traders had previously bought aggressively into USD declines—giving us contrarian signal to buy the Euro/US Dollar. Yet the most recent turnaround leaves crowds pointing in exactly the opposite direction, and the abrupt shift leaves scope for further dollar pullbacks. The notable exception is the US Dollar/Japanese Yen pair, where our contrarian sentiment strategy points to further Japanese Yen rallies (USDJPY losses).

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