| | | | DailyFX Forex Options Weekly: USD Headed Lower, but Reversal Risk High
| | Forex futures and options positioning shows that large speculators remain heavily net-long the US Dollar (ticker: USDOLLAR), warning that a continued correction in positioning could force further USD losses.
As of the most recent CFTC Commitment of Traders report, Non-commercial traders remained near their most bullish the US Dollar against the Euro since the EURUSD set a significant bottom near 1.20 in 2010. A subsequent rally suggests many covered their shorts, but positioning remains quite extreme and we see further scope for EURUSD short covering. There's considerable uncertainty surrounding major pairs, but overall positioning and sentiment suggests that the US Dollar may continue to trade lower.
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Best regards,
David Rodríguez, Quantitative Strategist
drodriguez@dailyfx.com |
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