Sharp US Dollar Reversal Looks like the Start of a Larger Rally
- US Dollar may have set critical bottom versus major forex counterparts
- Retail forex crowds remain long Dollar, but huge shift warns of turn in price
- Our sentiment-based trading systems have begun buying into Greenback strength
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Weekly Summary of Forex Trader Sentiment and Changes in Positioning
It’s a fool’s errand to try and catch major turning points in price, and saying that it “feels like” a reversal is a sure-fire way to lose money over the long run. Yet our retail FX sentiment-based strategies have begun buying into the USD bounce as we see early signal of a potential turn.
Past performance is NOT indicative of future results, but our Momentum2 trading system has done well trading the Greenback through recent months of trading. The fact that it has now sold EURUSD, GBPUSD, and AUDUSD serves as early confirmation of a potentially lasting Dollar bounce.
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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.