Crowds Show Euro Likely to Test 1.3550 Against Fast-Falling Dollar
- EURUSD – Euro Targets Highs Near 1.3550
- GBPUSD – British Pound Forecast to Strengthen
- USDJPY – Yen May Set Important Top (USDJPY Bottom)
- USDCHF – Swiss Franc expected to Rally Further
- USDCAD – Canadian Dollar Forecast to Break to Highs
- GBPJPY– British Pound Could Turn versus JPY
Retail FX trading crowds have continued to buy into US Dollar (ticker: USDOLLAR) declines against the Euro, British Pound, Swiss Franc, and Canadian Dollar. We see little reason to alter our calls for further USD weakness across the board.
Crowds turned short the Euro against the US Dollar when the EURUSD pair crossed above $1.27 and have continued to sell. The next significant Euro/US Dollar resistance marker suggests it could rally to $1.3550 before a major pullback. We see similar stories across other USD pairs, and indeed our retail FX sentiment-based forecasts line up well with FX Options and Futures positioning analysis.
We will keep a close eye on the Dow Jones FXCM Dollar Index for any signs of potential reversal. Yet the Dollar Index targets its November lows on a recent break of support; we remain bearish until further notice.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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