US Dollar Forecast Shifts on Trader Sentiment

EURUSD – Euro Forecast Unclear on Extremely Choppy Price Action
GBPUSD – British Pound Outlook Tentatively Bearish on Sharp Shift
USDCHF – Swiss Franc Expected to Rally Further Versus US Dollar
USDCAD – Canadian Dollar Forecast Remains Bullish Against US Dollar
USDJPY – Japanese Yen Forecast Unclear Against US Dollar

EURUSD – Euro Forecast Unclear on Extremely Choppy Price Action
GBPUSD – British Pound Outlook Tentatively Bearish on Sharp Shift
USDCHF – Swiss Franc Expected to Rally Further Versus US Dollar
USDCAD – Canadian Dollar Forecast Remains Bullish Against US Dollar
USDJPY – Japanese Yen Forecast Unclear Against US Dollar

While the SSI is available once a week on DailyFX.com, you can receive SSI readings twice a day in DailyFX Plus Forex Intraday Trading Signals

The SSI sought a EURUSD rally since 1.26 and was signaling a reversal around 1.60. Find our more in the DailyFX Forex Forum

05-28-09SSI01

Historical Charts of Speculative Forex Trading Positioning


05-28-09SSI02
EURUSD – Our forex trading signals recently went short the Euro against the US Dollar, as a sharp shift in sentiment gave contrarian signal to sell. The ratio of long to short positions in the EURUSD stands at -1.45 as nearly 59% of traders are short. Normally we would take a contrarian long position on the net-short ratio. Yet long positions are actually 15.6 percent stronger that last week, while shorts have fallen by 8.7 percent through the same period. The shift in crowd trading signals that further losses are likely, but price action remains extraordinarily choppy—advising caution against aggressive momentum trades.