US Dollar Likely to Fall Further on Trading Crowd Shift
- EURUSD – Euro Could Continue its Rally
- GBPUSD – British Pound Forecast Unclear
- USDJPY – Japanese Yen Likely to Strengthen vs USD
- USDCHF – Swiss Franc Expected to Appreciate Further
- USDCAD – Canadian Dollar Forceast Bullish vs USD
- GBPJPY – British Pound Outlook Neutral versus Yen
View individual currency SSI charts in our FX Sentiment sections
Forex retail trading crowds continue to buy into US Dollar declines, selling into euro and Swiss Franc strength. Our Speculative Sentiment Index is a contrarian indicator and suggests that the EURUSD could continue to rally while the USDCHF declines.
Outlook for other currency pairs is slightly less clear, but overall we see that retail trading crowds remain fairly heavily net-long the USD. This is a noteworthy departure from just three weeks ago when many of the same retail traders sold into Greenback strength.
The shift in crowd positioning gives contrarian signal that the US Dollar could resume its previous declines against the fast-rising Euro, Swiss Franc, and Japanese Yen.
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.