US Dollar Targets Highs Versus Euro as Sentiment Turns
- EURUSD – Euro Forecast to Fall Further Against Dollar
- GBPUSD – British Pound Expected to Gain versus Euro
- USDJPY – US Dollar Forecast to Test Key Support vs. Yen
- USDCHF – Swiss Franc May Fall Further against USD
- USDCAD – Canadian Dollar Forecast to Fall on Crude Oil
- GBPJPY – British Pound Targets Lows versus Japanese Yen
The US Dollar (ticker: USDOLLAR) has broken to fresh highs against the Euro and other major counterparts, and retail forex trader sentiment suggests the EURUSD may continue to fresh lows as the USD trades towards fresh 2012 highs.
Our proprietary FXCM Speculative Sentiment Index data shows that the majority of retail traders are now long the Euro against the US Dollar for only the third time in 2012. We most often take a contrarian view of retail sentiment. In other words—if everyone believes that the Euro/US Dollar will bounce, we often see price head in the exact opposite direction and call for EURUSD losses.
Our own technical Euro/US Dollar forecasts predict that a hold of important resistance near the May high of $1.3283 points to a major break lower. We similarly believe that sentiment and technical indications call for important US Dollar gains against the Canadian Dollar and Swiss Franc.
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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