Retail forex trading crowds have sold aggressively into US Dollar (ticker: USDOLLAR) strength against the Australian Dollar and Japanese Yen—producing contrarian signal to favor gains.
View individual currency sections:
EURUSD - Euro Forecast Clouded
GBPUSD - British Pound May Fall Further
USDJPY - Japanese Yen Forecast to Fall
USDCHF - Swiss Franc Eyes Gains
USDCAD - Canadian Dollar Forecast to Depreciate
AUDUSD - Australian Dollar Likely Topped
The significant shift in trader sentiment has been enough to force our sentiment-based forex trading strategies to go long the US Dollar and short the Japanese Yen across various counterparts.
Those USD-long positions line up well with our bullish forecasts for the Dow Jones FXCM Dollar Index, and indeed we believe Dollar longs remain attractive amidst the clear retail sentiment shift.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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