- EURUSD – Euro Near-term Top in Place vs USD
- GBPUSD – British Pound Set to Reverse July Strength
- USDJPY – Japanese Yen Sentiment Weakens Further
- USDCHF – Swiss Franc Outlook Calls for Further Loses
- USDCAD – Canadian Dollar to Fall vs USD
- GBPJPY – British Pound Expected to Fall versus JPY
Forex trading crowds have aggressively faded the US Dollar (ticker: USDOLLAR) declines against the Euro, and our sentiment-based trading strategies are now long USD and call for new EURUSD loses.
It remains to be seen if the EURUSD holds the July low at 1.2040/45, which we expect to break now that the European Central Bank has indicated that no new bond buying measures will be in place in the near-term; this in turn should give way to sharp declines by Italian and Spanish sovereign bonds, which will pressure the Euro across the board.
How do we interpret and trade with the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Analyst for DailyFX.com
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