US Dollar targets Major Break Higher versus Euro
- EURUSD – Euro at Major Turning Point versus Dollar
- GBPUSD – British Pound Likely to Fall Further
- USDJPY – US Dollar Outlook Bearish versus Yen
- USDCHF – Swiss Franc Outlook Turns Negative
- USDCAD – Canadian Dollar Targets Breakout
- GBPJPY – British Pound Likely to Fall Further versus Yen
The US Dollar (ticker: USDOLLAR) has rallied substantially versus the Euro, British Pound, and other counterparts. Our retail forex trader positioning-based Speculative Sentiment Index points to a major US Dollar uptrend across the board.
Retail trading crowds remained aggressively long the US Dollar against the Euro and other major counterparts as it consistently hit fresh lows through the first quarter of the year (EURUSD highs). Yet those same traders are now net-short USD for the first time since January, and the Dow Jones FXCM Dollar Index looks as though it could break above significant resistance and signal an “epic shift”.
Time will tell whether this is truly an important US Dollar bottom and turn higher (EURUSD top), but recent forex retail trading crowd sentiment suggests we can expect continued EURUSD losses throughout the second quarter of 2012.
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
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