The US Dollar likely set a major bottom versus the Euro, British Pound, and Australian Dollar. How might we trade it?
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Weekly Summary of Forex Trader Sentiment and Changes in Positioning
Our proprietary Speculative Sentiment Index data shows that retail forex traders have sold aggressively into recent US Dollar strength versus the Euro, British Pound, and Australian Dollar. We use the SSI as a contrarian signal to price action; if crowds are selling, we look to buy.
Combined with a potentially significant shift in forex market conditions, this is reason enough to call for further Greenback strength.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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