Forex Information

Forex trading crowd sentiment has favored U.S. Dollar (ticker: USDOLLAR) gains against the Euro and Sterling for some time, but now with the move to safer assets rapidly accelerating, significant shifts suggests that the EUR/USD may continue to fall as the Dollar rally continues across the board.

 

Given the contrarian nature of the Speculative Sentiment Index, the signal flashing is for further U.S. Dollar and Yen strength across the major currencies. The negative correlation the U.S. Dollar has with the Dow Jones Industrial Average serves as a confirmation for this bias, as equity markets across the globe have sold off rapidly and look exceptionally fragile going forward.

 

 

 

Written by Christopher Vecchio, Currency Analyst