Aussie and British Pound Could See Further Strength Versus US Dollar
View individual currency sections:
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
Retail forex traders have significantly scaled back long positions in the AUDUSD, and the important shift in sentiment warns that we may continue higher. British Pound sentiment has seen the start of a similar shift, and our sentiment-based strategies have bought into the AUD and GBP correction.
In the meantime we’re waiting for a bigger break in the Euro and Gold prices to take a stronger stance on the Greenback. A noteworthy drop in forex volatility suggests we may see further consolidation through near-term trading, but that does not rule out sharp intraday price swings.
Our breakout-based and trend-following strategies have given back some of their February gains on sideways price action, but we’re optimistic that the next major moves will provide attractive trading opportunities.
Download eight years’ worth of SSI data via this link.
--- 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.