US Dollar Likely Set Important Bottom versus Euro, Canadian Dollar
- EURUSD – Euro Forecast to Fall Further as Sentiment Turns
- GBPUSD – British Pound Likely to Continue Falling
- USDJPY – Japanese Yen Forecast to Strengthen
- USDCHF – Swiss Franc Uptrend Shows Little Sign of Slowing
- USDCAD – Canadian Dollar Likely Topped versus US Dollar
- GBPJPY – British Pound Outlook Unclear versus Japanese Yen
View individual currency SSI charts in our FX Sentiment sections
Retail trading crowds remained net-long the USD versus the Euro since early January and against the Canadian Dollar since September, 2010. The fact that crowds have recently turned net-short the US currency against these counterparts underlines the potentially pivotal shift in sentiment and warns that the US Dollar could continue higher through the near term.
We likewise see strong evidence of a potential US Dollar bottom via FX options and futures positioning/sentiment. It is always extraordinarily difficult to time a top or a bottom following an extended trend in any currency, but recent evidence suggests that the Greenback may have set an important short or medium-term bottom against major counterparts.
View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.
To get on the mailing list for the SSI and other reports from author David Rodriguez, e-mail subject line “Distribution list” to
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.