We like Buying the US Dollar - Key Questions are "Where" and "When"
- Forex trading crowds buy into US currency weakness
- Extremely low volatility suggests Dollar-long positions may do well here
View individual currency sections:
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
The US Dollar is testing major lows versus the Euro, British Pound, Japanese Yen, and Swiss Franc. We think it holds, and we’re looking for buying opportunities.
The majority of retail forex traders continue buying aggressively into Dollar weakness, and that would normally leave us in favor of further losses; when everyone’s buying, we typically prefer to sell. Yet our data likewise shows that the crowd does well in extremely low-volatility environments.
We’re looking for good levels at which to go long the Dollar against most counterparts. 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.