- EURUSD – Euro Forecast to gain versus US Dollar
- GBPUSD –British Pound Forecast Bearish
- USDJPY – Yen Poised to Continue Rally
- USDCHF – Swiss Franc Expected to Weaken
- USDCAD – Canadian Dollar Likely to Fall Further
- GBPJPY – British Pound Outlook Bearish vs Yen
A recent shift in forex trading crowd sentiment points to US Dollar (ticker: USDOLLAR) losses against the Euro, underlining a significant change in market positioning and pivotal move for the EURUSD.
Last week we wrote that the US Dollar could soon head for losses as traders showed clear hesitation in key USD pairs and warned of a potential trend shift. Indeed, the Dow Jones FXCM Dollar Index may soon head lower as it breaks key technical support levels.
Watch for further US Dollar losses through upcoming trade. Given the USD’s record correlation to the Dow Jones Industrial Average and broader financial markets, this would imply risks of a noteworthy bounce in stocks.
View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.
Have further questions on the SSI? Contact our resident SSI expert atdrodriguez@fxcm.com
How do we interpret the SSI? Watch anFXCM 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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