Dollar at Critical Turning Point, but When Would we Buy?
- Crowds are extremely short the US currency
- Key forex pairs trade at major support levels
- Next move will likely prove decisive
View individual currency sections:
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
The US Dollar is at critical support, and forex sentiment suggests it might break considerably lower. But what might lead us to buy the Dollar at these levels?
Retail forex crowds have bought aggressively into Greenback weakness versus the Euro, British Pound, and Australian Dollar. We most often use this as a contrarian indicator to price action; if everyone’s buying, we prefer to sell.
But there comes a point where our proprietary data shows crowds are TOO short. Is this it?
Read full currency pair-by-currency pair rundowns in the links above, and follow future updates on retail sentiment and our trading strategies via my e-mail distribution list.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.