Low Sentiment in US Dollar = Crowded Trade?

"It’s the U.S. Dollar. And yet, despite the lowest sentiment reading in recent history, the greenback has failed to take out the previous low. In the strange realm of technical analysis this is known as a positive divergence — positive for the dollar, that is.

Yeah, I know.  It’s hard to believe, isn’t it?  How could anything be positive for this sad little currency, so unwanted and alone?  Well, here it is on the chart below from SentimenTrader.  The worst sentiment reading ever accompanied by a slightly higher low in the dollar (compared to the 2008 low).

http://blogs.forbes.com/johnnavin/2011/04/26/the-most-hated-investment-in-america/