Euro Targets Fresh Lows on Forex Trading Crowd Sentiment
- EURUSD – Euro Forecast to Fall to Fresh Lows
- GBPUSD – British Pound Could Weaken Further
- USDJPY – Yen Outlook Unclear on Mixed Sentiment
- USDCHF – Swiss Franc expected to Fall Further
- USDCAD – Canadian Dollar Forecast Unclear
- GBPJPY – British Pound Declines May Continue vs. JPY
Forex trading crowds have sold aggressively into US Dollar (ticker: USDOLLAR) rallies, giving contrarian signal that the Euro/US Dollar pair could fall to fresh lows as the Greenback enjoys a sharp resurgence.
The number of traders long the Euro against the US Dollar jumped a significant 19 percent overnight, while the number short fell 12 percent. The net result is that traders are aggressively long the EURUSD, and such shifts in sentiment quite often precede further Euro losses.
Much the same can be said for the British Pound/US Dollar and other key USD currency pairs; retail trading crowds are aggressively selling the US currency. The sharp shifts in sentiment favor further US Dollar gains.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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