The US dollar seems to be second in the list of safe haven currencies, after the Japanese yen, and it is certainly not as strong as it used to be earlier in the month. Is it still overbought? The analysts at Credit Agricole certainly think so, and they are probably happy with the position they took on EUR/USD: Here is their view, courtesy of eFXnews: The USD is broadly firmer as risk sentiment remains subdued and weakness in European data persists. EUR ticked below 1.2650 again while GBP traded below 1.60 for the first time in over a week. However, the USD remains largely in consolidation mode with both the DXY and BBXY still about 1.2% off the early October highs. We expect the USD to chop around in recent ranges for now but look for further consolidation and position clearing before the broad rally can resume. The next big event is the October 29 FOMC meeting and the market is starting to look for dovish signals from the statement given sharp drop in US inflation expectations and the slowdown in Europe and China. Indeed, while the divergence theme across the global economy is gaining steam (supportive of our long-term bullish USD view), we an intensifying global economic slowdown could delay the normalization of US monetary policy, especially if global tail risks continue to increase. We note that the fed fund futures is pricing in a 50/50 chance of a 25bp rate hike in September 2015 compared to a 48% chance of 50bp worth of tightening at the September 2015 just a month ago. Fed officials have recently voiced some concerns about weak inflation pressures, which we also think could remain a source of concern for the USD in the near-term, helping further consolidate recent gains. *CA went long EUR/USD last Friday at 1.2660 with a target at 1.31 and a stop of 1.2350. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next MetaQuotes opens shop in South Africa Yohay Elam 8 years The US dollar seems to be second in the list of safe haven currencies, after the Japanese yen, and it is certainly not as strong as it used to be earlier in the month. Is it still overbought? The analysts at Credit Agricole certainly think so, and they are probably happy with the position they took on EUR/USD: Here is their view, courtesy of eFXnews: The USD is broadly firmer as risk sentiment remains subdued and weakness in European data persists. EUR ticked below 1.2650 again while GBP traded below 1.60 for the first time in over a week. However,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.