Euro Targets $1.1875 as Retail Crowds buy Post ECB Rate Cut
- EURUSD – Euro Targets Lows of $1.2290 and $1.1875
- GBPUSD – British Pound Forecast Favors Declines
- USDJPY – Japanese Yen Outlook Clouded as USD Surges
- USDCHF – Swiss Franc Expected to Fall Further
- USDCAD – Canadian Dollar Forecast to Gain versus US Dollar
- GBPJPY – British Pound Outlook Unclear versus Japanese Yen
Retail forex trading crowds continue to sell aggressively into US Dollar (ticker: USDOLLAR) strength, and our proprietary sentiment-based strategies continue to buy USD against the Euro, British Pound, and Swiss Franc.
The Dow Jones FXCM Dollar Index rallied sharply off of an important base set in the first week of June, and our forecasts call for further US Dollar strength across the board. Our Q3 forecast for the Euro/US Dollar favors USD rallies into 2010 EUR lows near $1.1875 and beyond.
When retail trading crowds grow aggressively short US Dollar, we most often forecast gains. Indeed, current market conditions remain conducive to continued EURUSD losses as European tensions remain elevated. Traders continue to seek refuge in the safe-haven US currency.
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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