US Dollar Targets Fresh Lows Against All Except Euro and Yen

• EURUSD – Euro May Have Topped
• GBPUSD – British Pound Targets Fresh Highs
• USDJPY – US Dollar Eyes Gains against the Yen
• USDCHF – Swiss Franc Likely to Strengthen Further
• USDCAD – Canadian Dollar Forecast to hit Fresh Highs
• GBPJPY – British Pound Sets Significant Bottom vs. JPY

Our proprietary forex trading sentiment indicator continues to favor US Dollar (ticker: USDOLLAR) losses, but early signs of an important sentiment shift suggest the Euro may have turned.

We remain quite bearish the safe-haven US currency across the board, but the Euro’s important underperformance suggests the EURUSD could continue lower. Our SSI-based “Tidal Shift” strategy has gone short Euro from $1.3325. And though past performance is not indicative of future results, the system has caught several important EUR shifts through recent trading.

The US Dollar nonetheless looks to trade lower versus the British Pound, Swiss Franc, Canadian Dollar, and other key counterparts. Unless we see a significant turn in market sentiment, financial market risk appetite leaves the safe-haven USD distinctly out of fashion.

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 receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to drodriguez@dailyfx.com

Contact David via Twitter at http://www.twitter.com/DRodriguezFX