Thursday, February 28, 2013

Sentiment Favors Aussie & GBP Weakness, USD and Yen Strength




Forex trading crowds have aggressively sold the Japanese Yen and US Dollar against the British Pound and Australian Dollar. Our sentiment-based strategies will continue to do the opposite.



View individual currency sections:



EURUSD – Euro Breakdown in Doubt as Crowds Lack Conviction



GBPUSD – British Pound Likely to Hit Fresh Lows



USDJPY – Japanese Yen Reversal Well Underway



XAUUSDGold Prices Seem Unlikely to Hold Lows



SPX500 – SPX500 May Retest Highs as Crowds Sell



AUDUSDAustralian Dollar Targets Further Lows



Weekly Summary of Forex Trader Sentiment and Changes in Positioning


ssi_table_story_body_Picture_7.png, Sentiment Favors Aussie & GBP Weakness, USD and Yen Strength



Retail forex speculators have aggressively sold the Japanese Yen and US Dollar against the Australian Dollar and British Pound. When everyone goes in one direction, we most often prefer going the opposite way.



Indeed, our breakout-based and trend-following strategies have recently done well going against the crowd through recent market conditions. And though past performance is not indicative of future results, current market conditions have historically coincided with similar outperformance in said systems.



Download eight years’ worth of SSI data via this link.


ssi_table_story_body_1a.png, Sentiment Favors Aussie & GBP Weakness, USD and Yen Strength


Trade with the purely SSI-based Momentum1 strategy: article, webinar recording



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



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


ssi_table_story_body_Picture_8.png, Sentiment Favors Aussie & GBP Weakness, USD and Yen Strength



Written by David Rodrigue , Quantitative Strategist for DailyFX.com



To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.



New to FX markets? Learn more in our video trading guide.



Contact David via



Twitter at http://www.twitter.com/DRodrigue FX



Facebook at http://www.Facebook.com/DRodrigue FX





Sentiment Favors Aussie & GBP Weakness, USD and Yen Strength

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