US Dollar May Break to Further Highs but Euro's Next Move Critical
- Sharp shift towards US Dollar-selling gives contrarian warning it may continue higher
- A sharp drop in forex volatility nonetheless gives pause, next market moves are critical
- See full analysis below in individual currency sections
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Weekly Summary of Forex Trader Sentiment and Changes in Positioning
A major shift in retail forex positioning suggests the US Dollar may rally further, but it will be critical to watch the Euro’s near $1.11 for larger moves.
This is especially true given that FX volatility prices have tumbled near multi-month lows on a slowdown in broader financial market tensions. If the Euro holds key lows, those traders who have bought into declines stand to benefit.
See specific US Dollar forecasts in the sections above, and sign up for future e-mail updates via this author’s 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.