Continued US Dollar declines have been met with forex trading crowd buying, giving contrarian signal to stay short the USD versus the Euro, British Pound, Japanese Yen, Swiss Franc, and Canadian Dollar. Such one-sided crowd positioning underlines the extent to which the US Dollar has fallen and that short-term momentum remains firmly to the downside. Yet tomorrow’s US Nonfarm Payrolls report may very well prove pivotal for the short-term trajectory of the downtrodden USD. Several key Greenback pairs remain near key technical levels, and it will be critical to watch market reactions to said news event. Though overall momentum favors losses, direction can and change switch in an instant.
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