- EURUSD – Euro Targets Lows as Forex Crowds Turn
- GBPUSD – British Pound Forecast to Fall Further
- USDJPY – Japanese Yen at Critical Resistance, Outlook Bullish
- USDCHF – Swiss Franc Expected to Weaken Further
- USDCAD – Canadian Dollar Forecast to Fall versus US Dollar
- GBPJPY – British Pound Outlook Bearish versus Japanese Yen
Retail forex trading crowds have aggressively sold into US Dollar (ticker: USDOLLAR) strength, and our proprietary sentiment-based strategies have bought the USD against the Euro, British Pound, and Australian Dollar—calling for further Greenback gains.
The US Dollar initially looked as though it could continue to consolidate and correct lower against the Euro (EURUSD higher) through the end of June. Yet current event risk remains critical on the European summit and developments in Euro Zone fiscal crises. We see scope for further EURUSD declines.
Limited forex options market volatility expectations dampens optimism for explosive US Dollar breakouts, but the Greenback looks as though it could continue to trade quietly higher through the end of June. It will be critical to watch moves in the Dow Jones FXCM Dollar Index at important support, but a hold of significant lows would clearly bolster our calls for further Dollar strength.
How do we interpret and trade with the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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