US Dollar Gains may Slow on Shift in Crowd Sentiment
- EURUSD – Euro Losses may Slow on Sentiment
- GBPUSD – British Pound Likely to Continue Falling
- USDJPY – Japanese Yen Outlook Clouded by Recent Shift
- USDCHF – Swiss Franc Uptrend Intact
- USDCAD – Canadian Dollar Likely Topped versus US Dollar
- GBPJPY – British Pound Outlook Bullish versus Yen
View individual currency SSI charts in our FX Sentiment sections
A noteworthy correction in forex trading crowd sentiment shows many traders have once again been buying into US Dollar weakness, giving contrarian signals that recent Greenback gains may slow.
Last week we highlighted the fact that traders had recently flipped to net-short the US Dollar against the euro for the first time since January. Yet crowds have more recently flipped once again, and our SSI ratio is quite near neutral.
The sharp month-over-month build in USD-short positions warns that the currency may have set an important bottom, but the most recent shift suggests that the pace of gains may slow and perhaps reverse through shorter-term trading.
View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.