Euro May have Set Important Top at $1.2440
- EURUSD – Euro Forecast Points to $1.2440 Top
- GBPUSD – British Pound Sets Stage for Breakdown
- USDJPY – Japanese Yen May have Topped versus Dollar
- USDCHF – Swiss Franc Likely to Fall Further
- USDCAD – Canadian Dollar Forecast to Strengthen Further
- GBPJPY – British Pound Expected to Fall versus JPY
Forex trading crowds have aggressively sold into overnight US Dollar (ticker: USDOLLAR) strength against the Euro and other major currencies, and the shift in sentiment suggests the EURUSD may have topped at $1.2440.
Timing major currency turnarounds is always especially difficult, but a recent shift towards retail crowd EURUSD buying gives us contrarian signal that the Euro may trade towards fresh lows. Retail sentiment likewise points to a potentially significant reversal for the USDJPY as it set a short-term bottom at ¥77.90.
Our retail sentiment-based forex trading strategies are currently flat, but said systems could soon go long US Dollars across the board as they go against the most recent turn in crowd sentiment.
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
To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to firstname.lastname@example.org; Contact David via Twitter at http://www.twitter.com/DRodriguezFX
Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.