Retail FX Crowds Buy US Dollar, but Further Declines in Store
Retail forex traders remain aggressively long the US Dollar (ticker: USDOLLAR) against the Euro and broader counterparts. We see scope for continued Dollar weakness, and indeed our sentiment-based trading strategies continue to sell into USD declines.
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We continue to favor broader US Dollar weakness as quiet forex market conditions continue to hurt the safe-haven US currency.
As long as retail trading crowds continue to buy aggressively into US Dollar weakness, we see little reason to stray from our long-standing USD-bearish trading bias.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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