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.

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT to gain insight on indices and commodities for the active trader. Register here: https://t.co/gghsFsZYlx https://t.co/MpELL4brE5
  • The Canadian Dollar has proven stable in recent weeks following a dramatic turn lower in March, guided to the downside by energy markets. Get your $USDCAD market update from @CVecchioFX here: https://t.co/7tlrn74X3t https://t.co/dXPFiHz6EA
  • Idea de #trading del día: $GBPUSD e #IBEX35 https://t.co/keSNWeUnM5 https://t.co/Cxv4P4zZWc
  • Heads Up:💶 ECB Guindos Speech due at 08:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-27
  • ECB PRESIDENT LAGARDE: - No new Euro debt crisis after pandemic, what matters is how borrowed money is spent - Not overly concerned about high debt levels #EUR #ECB
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.62%, while traders in US 500 are at opposite extremes with 76.70%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/01rko7aQXN
  • Heads Up:🇿🇦 Inflation Rate YoY due at 08:00 GMT (15min) Previous: 4.1% https://www.dailyfx.com/economic-calendar#2020-05-27
  • BoJ states that Break-even level for its ETF holdings is estimated to be around 18,500 for Nikkei stock average $JPY
  • ECB PRESIDENT LAGARDE: - Very hard to forecast how badly the economy has been affected - Very likely that the ECB's mild scenario is out of date, economy is likely somewhere between 'medium' and 'severe' scenarios #EUR #ECB
  • ECB's Lagarde says the ECB's mild growth scenario is already outdated
Forex Analysis: Crowd Shift Favors Australian Dollar, JPY Weakness

Forex Analysis: Crowd Shift Favors Australian Dollar, JPY Weakness

2012-12-27 16:15:00
David Rodriguez, Head of Product

A substantial shift in US Dollar (ticker: USDOLLAR) positioning versus the Australian Dollar and Japanese Yen suggests that the Greenback may continue higher.

View individual currency sections:

EURUSD - Euro Forecast to Rally as Crowds Sell

GBPUSD - British Pound Sentiment Warns of Further Weakness

USDJPY - Japanese Yen Forecast to Fall Further

USDCHF - Swiss Franc Outlook Remains Bullish

USDCAD - Canadian Dollar Trading Outlook Unclear

AUDUSD - Australian Dollar Forecast to Fall Further

ssi_table_story_body_Picture_11.png, Forex Analysis: Crowd Shift Favors Australian Dollar, JPY Weakness

In fact, retail trading crowds have now turned net-short the USDJPY for only the third time this year as the pair presses to fresh multi-year highs. A surge in AUDUSD long interest leaves retail traders net-long for the first time since mid-November and similarly favors US Dollar strength.

It is nonetheless critical to note that crowds remain heavily long the USD against the Euro and Swiss Franc—giving us mixed signals for the US currency. Yet recent shifts may be the start of much larger corrections, and we’ll keep an especially close eye on whether the USD trades higher to start the New Year.

ssi_table_story_body_Picture_12.png, Forex Analysis: Crowd Shift Favors Australian Dollar, JPY Weakness

--- 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.


News & Analysis at your fingertips.