US Dollar Likely Bottomed versus Euro, Japanese Yen
- EURUSD – Euro Forecast Grows Bearish as Crowds Buy
- GBPUSD – British Pound at Make-or-Break Levels
- USDJPY – Japanese Yen Likely Set Important Top
- USDCHF – Swiss Franc Expected to Fall Further
- USDCAD – Canadian Dollar Forecast to Strengthen
- GBPJPY – British Pound Outlook Remains Bearish vs JPY
Retail FX trading crowds continue selling into recent US Dollar (ticker: USDOLLAR) rallies against the Euro and Japanese Yen, and the shift warns that we may see further EURUSD declines and a substantive USDJPY turnaround.
Anticipating major tops and bottoms during strong currency trends is extremely difficult, but an especially large swing in retail USDJPY positioning warns that the pair may have bottomed at ¥77.90. A broader US Dollar-bullish bias adds weight to our Japanese Yen forecasts, while we likewise see scope for the Euro to fall further as crowds buy into its recent losses.
Past performance is not indicative of future results, but our retail forex sentiment-based trading strategies have historically caught important turns in US Dollar pairs. We look to the SSI to confirm whether or not this is indeed the start of a larger US Dollar turnaround against key FX counterparts.
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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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.