Extreme trader sentiment points to possible NZDUSD uptrend
The Trend Follower Strategy has just bought NZDUSD at 0.66662. The system recommends entering this trade at any price between 0.66538 and 0.66786. The signal was issued because our Speculative Sentiment Index is extremely positive, with a value of -1.55258. This suggests that the NZDUSD could be trending upwards.The 14-period on a is 0.00495, so the stop loss has been set at 0.66167. This stop loss order is a trailing stop that will move up as the market moves up. There is no profit target for this strategy. We expect to be closed by the stop loss.Trend Follower is a trend trading strategy that aims to buy and hold rising currency pairs and to sell short and hold falling currency pairs. The strategy looks to buy when the Speculative Sentiment Index is below -1.5, and looks to short when it is above +1.5.
Signal ID: 73759
Time Issued: Friday, 23 October 2020 05:00:15 GMT
Entry: 0.66538 – 0.66786
Stop Loss: 0.66167
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients’ best interests and represent their views without misleading, deceiving, or otherwise impairing the clients’ ability to make informed investment decisions. For more information about the FXCM’s internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms’ Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.