- EURUSD – Euro Likely to Fall Further versus US Dollar
- GBPUSD – British Pound Forecast to Depreciate Further
- USDJPY – Yen Outlook Clouded as Dollar Strengthens
- USDCHF – Swiss Franc Outlook Bullish
- USDCAD – Canadian Dollar Forecast to Fall versus USD
- GBPJPY – British Pound Declines May Continue vs JPY
Forex trading crowds continue selling the US Dollar (ticker: USDOLLAR) as the currency hits fresh peaks against the Euro, British Pound, and Canadian Dollar. Such one-sided sentiment gives contrarian signal that the EURUSD could hit new lows.
Trading crowds remain aggressively net-short the US Dollar (ticker: USDOLLAR) across the board, giving contrarian signal that the currency could continue to fresh highs against the Euro, British Pound, Canadian Dollar, and other key counterparts. Indeed, crowds are short and continue selling—underlining the intensity of the dollar’s uptrend.
The only caveat remains that price action can become exceedingly choppy and unpredictable over holiday trading periods. The fact that most US markets are closed on Thursday and for most of Friday warns that markets will be very illiquid. Watch for especially sharp moves on limited market participation.
View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To contact David, e-mail drodriguez@dailyfx.com
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