Forex crowds have bought aggressively into Euro and British Pound weakness against the US Dollar. Our strategies continue to sell, and we see scope for further Dollar strength.
View individual currency sections:
EURUSD - Euro Breakdown is the Real Deal
GBPUSD - British Pound Forecast to Depreciate Further
USDJPY - Japanese Yen Sentiment Flat, Turnaround Risk Grows
XAUUSD - Gold Prices Forecast to Weaken Towards 1530
USDCHF - USDCHF Breaks Resistance, Sentiment Favors Gains
AUDUSD - We Like Selling Australian Dollar Bounces
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
Our proprietary sentiment-based trading strategies have continued selling the Euro, British Pound, Australian Dollar, and Swiss Franc versus the resurgent US Dollar. Clearly one-sided retail crowd sentiment leaves us in favor of further USD gains.
A sharp jump in forex market volatility likewise suggests that our trend-following and breakout-friendly trading strategies can continue to do well as they go against crowd positioning. The Greenback looks well-positioned to continue higher against all except arguably the Japanese Yen.
Download eight years’ worth of SSI data via this link.
Automate our sentiment-based Momentum2 system: article, webinar recording
Automate the our high-volatility sentiment trading Breakout2 strategy: article and webinar recording.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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