Recent US Dollar losses have been met with a build in forex crowd longs, giving us a modestly bearish short-term forecast for the USD. Of note, Euro/US Dollar short positions have grown approximately 14 percent in the last week, pushing the percentage of traders short EURUSD to 55 percent. Though we are not necessarily at a major sentiment extreme, the shift in positioning hints that the Greenback could see further downside ahead of any potential rallies.
View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.
