- EURUSD – Euro May Have Set Important Top
- GBPUSD – British Pound Outlook Unclear
- USDJPY – Yen Forecast Bullish Despite BOJ
- USDCHF – Swiss Franc Forecast to Appreciate
- USDCAD – Canadian Dollar Outlook Bullish
- GBPJPY – British Pound Outlook Bearish vs Yen
Retail forex trading crowds have sold aggressively into recent US Dollar (ticker: USDOLLAR) strength, giving contrarian signal that the Greenback could continue its recent advance.
One only need look at the Euro/US Dollar pair to see that traders have aggressively sold into US Dollar strength. The number of traders long the EURUSD (short USD) grew by a significant 37 percent since just a week ago, while EURUSD short positions (long USD) fell 15 percent through the same stretch. We saw similar shifts in the GBPUSD, USDCHF, and USDCAD—warning of a potential US Dollar reversal.
A record correlation between the US Dollar and the UK FTSE 100 underlines the fact that markets are increasingly moving in tandem. Thus we may expect that the US Dollar could hit fresh highs as broader risky assets pull back further.
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— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To contact David, e-mail drodriguez@dailyfx.com
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