US Dollar Nears Bottom on Trading Crowd Sentiment Shift
- EURUSD - Euro Nears Major Turnaround on Sentiment Shift
- GBPUSD - British Pound Forecast Weakens on Crowd Trading
- USDJPY - Japanese Yen Forecast Unclear
- USDCHF - Swiss Franc Could Turn if Trading Crowds Relent
- USDCAD - Canadian Dollar Could Continue to Strengthen
- GBPJPY - British Pound Likely to Rally Against Japanese Yen
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Currency trading crowds have recently shifted towards selling the US Dollar against the Euro, British Pound, Japanese Yen, Swiss Franc, and Canadian Dollar—warning of a potential trend shift. Said crowds have remained heavily net-long the US currency as it hit fresh lows on a near-daily basis. Yet those same traders are now closing a lot of those long positions and initiating shorts as the US currency bounces off of recent lows. If we see trading crowds flip net-short the US Dollar after an extended period of staying long, it would produce a strong contrarian signal to buy into US Dollar strength.
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