US Dollar Sentiment Shift Early Sign of Potential Reversal
Intensely choppy US Dollar price action has led to similarly mixed forex trading crowd sentiment, moderating our conviction in calling for further USD weakness. Several of our sentiment-based algorithmic trading strategies remain short the US Dollar against the Euro and British Pound, but one in particular has begun buying USD versus the Japanese Yen. Clear indecision across forex markets makes it exceedingly difficult to make short-term forecasts with any sort of conviction. That said, a shift towards USD selling against the British Pound and JPY warns that a turn is possible. The next several days of forex trading may prove important in deciding overall direction for the US Dollar.
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