US Dollar Forecast to Lose Further on Sentiment Extremes

EURUSD – Euro Forecast Remains Bullish on Sentiment ExtremesGBPUSD – British Pound Forecast to Lose FurtherUSDJPY – Japanese Yen Predicted to Rally vs US DollarUSDCHF – Swiss Franc Trading Bias Strongly Bullish on SentimentUSDCAD – Canadian Dollar Forecast to Gain Further
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 SignalsForex trading crowds remain very aggressively long US Dollars against most major counterparts, giving us contrarian signal to sell into US Dollar weakness. Indeed, an incredible 84% of traders are long the US currency versus the Swiss Franc, while a similarly substantial 74% have bought the Greenback against the Japanese Yen. Market sentiment very clearly remains at extremes, and we see few signs that the US Dollar will reverse through upcoming trade. Indeed, we will wait for signs of trading crowd capitulation before calling for a US dollar reversal.