A noteworthy US Dollar decline has been met with aggressive forex crowd buying, giving contrarian signal to go short the USD versus the Euro, British Pound, Japanese Yen, Swiss Franc, and Canadian Dollar. This is a considerable shift from just yesterday when early signs of a turn in sentiment hinted that the Greenback could stage a bigger reversal versus major counterparts. Given such sharp choppiness in forex markets our forecasts have been admittedly inconsistent, and there is risk that current US Dollar tumbles will come to an abrupt end. Yet declines have been met with aggressive crowd buying, and such crowd reactions often precede a continuation in trend—pointing to US Dollar losses.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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