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Retail FX Sentiment Favors U.S. Dollar Strength

Christopher Vecchio

ssi_table_story_body_Picture_5.png, Retail FX Sentiment Favors U.S. Dollar Strength
ssi_table_story_body_Picture_6.png, Retail FX Sentiment Favors U.S. Dollar Strength

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

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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.