Flat and nervous
Last week I said "the next big US Dollar moves may need to wait until April." Yet here we are and the short-term trend is no clearer to me than it was previously.
In my weekly strategy outlook I point out the fact that the US Dollar (ticker: USDOLLAR) is at potentially make or break support to start the week, month, and quarter. Could the USD bounce or will it break lower?
The Speculative Sentiment Index shows that crowds are heavily net-long the USD across the board. This has led the DailyFX PLUS Forex Trading Signals to take contrarian short positions and go long AUDUSD, GBPUSD, and NZDUSD. The same systems are also short USDJPY.
I'm nervously optimistic that those systems will make good trades. But the key question is whether the USDOLLAR breaks key support at 9900.
I'm currently flat but nervously flat. Could be great trading coming up soon.
--- Written by David Rodríguez, Quantitative Strategist for DailyFX.com
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