US Dollar Breakout is Only the Beginning

12 July 2012 15: 41 GMT 
  retail forex trading crowds have aggressively sold into US dollar (ticker: USDOLLAR) rallies against the euro and British pound. Such one-sided sentiment gives contrarian signal that the EURUSD and GBPUSD may fall to fresh lows.
The Dow Jones FXCM dollar index now trades at monthly highs as the euro if to fresh multi-year lows, and our proprietary retail forex-based speculative sentiment index gives reason to expect further USD strength. Indeed, our technical forecast predicts that the USDOLLAR targets multi-year peaks on the broader greenback rally. We use our proprietary SSI data as a contrarian indicator. If crowds are aggressively long, price can and often will head lower in the opposite direction and trade. Our sentiment-based strategies have accordingly bought into USD strength against the euro, British pound, Swiss franc, Australian dollar, New Zealand dollar and Canadian dollar. We expect the US dollar may continue to strengthen through near-term trading.
How do we interpret and trade with the SSI? Watch on FXCM Expo presentation that explains the SSI.