Thursday, February 21, 2013

Euro Breakdown the Real Deal as Dollar Surges, Crowds Sell

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

XAUUSDGold Prices Forecast to Weaken Towards 1530

USDCHF – USDCHF Breaks Resistance, Sentiment Favors Gains

AUDUSDWe Like Selling Australian Dollar Bounces

Weekly Summary of Forex Trader Sentiment and Changes in Positioning

ssi_table_story_body_Picture_5.png, Euro Breakdown the Real Deal as Dollar Surges, Crowds Sell

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.

ssi_table_story_body_1a.png, Euro Breakdown the Real Deal as Dollar Surges, Crowds Sell

Automate our sentiment-based Momentum2 system: article, webinar recording

Automate our high-volatility sentiment trading Breakout2 strategy: article and webinar recording.

ssi_table_story_body_Picture_6.png, Euro Breakdown the Real Deal as Dollar Surges, Crowds Sell

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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Euro Breakdown the Real Deal as Dollar Surges, Crowds Sell

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