US Dollar Targets Fresh Lows on Forex Crowd Sentiment
- EURUSD – Fresh Euro Highs Favored on Sentiment
- GBPUSD – British Pound Targets Peaks
- USDJPY – Yen May Set Important Top (USDJPY Bottom)
- USDCHF – Swiss Franc expected to Rally Further
- USDCAD – Canadian Dollar Forecast to Strengthen
- GBPJPY – British Pound Declines May Continue vs. JPY
Forex trading crowds continue to buy into US Dollar (ticker: USDOLLAR) losses against the Euro, British Pound, Japanese Yen, Swiss Franc, and Canadian Dollar. We continue to call for fresh lows as our own Dow Jones FXCM Dollar Index trades near its lowest since November and remains at risk of further losses.
The pace of USD buying has somewhat slowed, which suggests that the rate of US Dollar declines could likewise moderate. Yet we see little risk of imminent reversal, and consistent crowd sentiment leaves us in favor of further weakness.
We will keep a close eye on the Dow Jones FXCM Dollar Index for any signs of potential reversal. Yet the Dollar’s break below important support suggests that we could see fresh Greenback losses before any real chance of reversal.
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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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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