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I've closed half of my US Dollar (ticker: USDOLLAR) long against the Japanese Yen, as the pair's break below ¥79.30 signals there may be further downside. I'm otherwise looking to get short AUDUSD and EURUSD at the right prices.

As I wrote yesterday, my weekly report on forex trader positioning warns that the USDJPY could continue lower as crowds buy the recent dip. We've broken below key congestion support at ¥79.30, and I've taken off half of the position.

I'd nonetheless like to buy the US Dollar more broadly, as I think the Dow Jones FXCM Dollar Index breaks above the key 10000 mark, and our crowd sentiment-based strategies have likewise gone long USD verus the Euro and Australian Dollar.

For the AUDUSD, I'll actually take a short entry at current market price of $1.0380 with a stop above key congestion highs at $1.0450. First targets are the $1.0300 mark, but I'll likely trail my stop instead of taking full profits on said position.

For the Euro it may have gotten a bit away from me. I'm looking for short-term sell targets around the $1.2780 mark, while max risk would be put above $1.2880.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David's e-mail distribution list via this link.

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