US Dollar Breakout Could be the Real Deal
Last week we claimed that sudden moves in FXCM Speculative Sentiment Index ratio warned that the sudden US Dollar rally could be sustained. The Greenback bounce has been anything but a straightforward process, we’ll admit. Yet the sudden USD breakout against the Euro could warn of bigger moves ahead. The only caveat is of course that this could be yet another false break and the Greenback could quickly be sold. Yet elevated forex market volatility expectations suggest this USD Rally could be the start of something larger.
Needless to say, traders should be careful of substantial forex market volatility—especially ahead of the highly-anticipated US Nonfarm Payrolls report due tomorrow at 12:30 GMT.
View an FXCM Expo presentation on the Speculative Sentiment Indexfor better understanding on how we use it in our trading.
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