Our sentiment-based forex trading strategies have bought aggressively into the US Dollar’s recent reversal against the Euro and British Pound, and the sharp shift in sentiment favors further EURUSD and GBPUSD losses. The clear danger in this forecast is that markets fail to break the US Dollar out of its recently-narrow trading range, as our Speculative Sentiment Index (SSI) tends to produce inaccurate trading signals through range market conditions. Suffice it to say, the impressive 90+ percent weekly jump in EURUSD long positions gives us contrarian signal to go short, but it will be critical to watch whether the pair breaks below key support at 1.4700.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
