US Dollar and Yen Positioned for Gains as Sentiment Hits Extremes
- EURUSD – Euro Forecast at $1.19 as Sentiment Remains Extreme
- GBPUSD – British Pound Forecast to Fall Further
- USDJPY – Yen May Strengthen against USD, EUR, GBP, AUD
- USDCHF – Swiss Franc Expected to Continue Lower
- USDCAD – Canadian Dollar Forecast to Break towards C$1.05
- GBPJPY – British Pound Targets Lows versus Japanese Yen
Forex trading crowds continue selling aggressively into US Dollar (ticker: USDOLLAR) strength against the Euro, British Pound, Swiss Franc, and Canadian Dollar. Our sentiment-based trading strategies favor USD longs against all except the Japanese Yen.
Our forex sentiment-based trading strategies continue buying into US Dollar and Japanese Yen strength across the board, and indeed we believe that strong forex volatility favors our breakout-based and trend-following automated trading systems.
Markets clearly do not move in straight lines, and sharp US Dollar and Japanese Yen gains leave ample room for short-term pullbacks. Yet we believe that the overall trend remains clear, and one-sided sentiment favors continued USD and JPY highs.
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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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.