News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.28% France 40: -0.42% US 500: -0.53% FTSE 100: -1.21% Germany 30: -1.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/X2cxLLQl17
  • Please join @CVecchioFX 's webinar at 6:30 AM EST/11:30 AM GMT which will focus on central banks and recent changes to #monetary policy. Register here: https://t.co/HyPgSrhjor https://t.co/1ymzWjliz2
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/9olCi7ylB8
  • 💶 Industrial Sentiment (JAN) Actual: -5.9 Expected: -7.2 Previous: -6.8 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 💶 Consumer Confidence Final (JAN) Actual: -15.5 Expected: -15.5 Previous: -13.8 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 💶 Economic Sentiment (JAN) Actual: 91.5 Expected: 89.5 Previous: 92.4 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 💶 Industrial Sentiment (JAN) Actual: -5.9 Expected: -7.2 Previous: -7.2 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 💶 Consumer Confidence Final (JAN) Actual: -15.5 Expected: -15.5 Previous: -13.9 https://www.dailyfx.com/economic-calendar#2021-01-28
  • 💶 Economic Sentiment (JAN) Actual: 91.5 Expected: 89.5 Previous: 90.4 https://www.dailyfx.com/economic-calendar#2021-01-28
  • Heads Up:💶 Industrial Sentiment (JAN) due at 10:00 GMT (15min) Expected: -7.2 Previous: -7.2 https://www.dailyfx.com/economic-calendar#2021-01-28
Forex Analysis: Retail Traders Heavily Long USD, Reversal Risk Grows

Forex Analysis: Retail Traders Heavily Long USD, Reversal Risk Grows

David Rodriguez, Head of Product

Retail forex trading crowds have bought aggressively into US Dollar (ticker: USDOLLAR) weakness against the Euro and Australian Dollar, we see risk of further declines.

View individual currency sections:

EURUSD - Crowds Most Net Short EURUSD Since High

GBPUSD - British Pound Sees Reversal Risk Near High

USDJPY - USDJPY Poised for Further Gains

USDCHF - Swiss Franc Forecast to Strengthen

USDCAD - Canadian Dollar Eyes Further Gains

AUDUSD - Australian Dollar Sentiment Warns of Extremes

ssi_table_story_body_SSI.png, Forex Analysis: Retail Traders Heavily Long USD, Reversal Risk Grows

Our sentiment-based forex trading strategies continue to sell the US Dollar and Japanese Yen across the board, and our overall outlook for market conditions likewise favors trading USD and JPY weakness.

It is important to note that sentiment is quite often at its most one-sided at important market tops and bottoms, and there is clear risk of a US Dollar reversal—particularly against the high-flying Australian Dollar. Yet tops and bottoms are only clear in hindsight, and current retail sentiment readings warn against buying USD and JPY weakness.

ssi_table_story_body_Picture_10.png, Forex Analysis: Retail Traders Heavily Long USD, Reversal Risk Grows

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES