de | cn | ru

Market News

Speculative Sentiment Index (SSI) continues to prove to be a reliable forex forecasting tool

Apr 24 2011
By
Forexbrokerz.com

 

More people are turning to the Speculative Sentiment Index (SSI) as it continues to prove to be a reliable forecasting tool in the forex market. This unique innovation of  FXCM Inc.(NYSE: FXCM) reveals where FXCM’s forex-trading crowd is positioned, helps traders create powerful trading strategies, and provides traders with insight where the market might potentially move.
 
The SSI is available free twice a day onDailyFX+for all FXCM live-account holders. The public can also view a weekly SSI report on Thursdays on DailyFX.com.
 

 

EURUSD, AUDUSD, and USDCAD all attracted great forex-market interest this past week. As of April 22, the AUDUSD was up to a new, all-time high. EURUSD, despite Portugal's debt issues, had broken back above 1.45, and the U.S. dollar hit a three-and-a-half-year low against the loonie.

 

Below is the FXCM’s Speculative Sentiment Index (SSI) diary of the euro, Australian dollar, and Canadian dollar for the week of April 18, and the result on the currency pairs’ price action.

 
EUR/USD
An average of 65% of EUR/USD traders at FXCM shorting the pair. The SSI suggests the majority of the trading crowd is usually wrong, and bases its signals on moving against the crowd.
Result: EUR/USD continually gained. The successful trader would have been the one who had followed the SSI signal and bought the euro.
 
AUD/USD
85% of FXCM AUD/USD traders thought the Aussie was going to fall, and maintained their short positions throughout the week. As a contrarian indicator, the SSI continually suggested going against the crowd and being long the pair.
Result: The AUD/USD hit a new, all-time high, and the successful trader would have been the one who had followed the SSI signal and bought the Australian dollar.
 
USD/CAD
The pair has been falling since mid-March. On average, 85% of FXCM’s traders were speculating on a rise in the USD/CAD, and were longing the pair. Meanwhile, the SSI continually signaled USD/CAD losses.
Result: USD/CAD kept falling, hitting its newest low in three-and-a-half years. If the 85% of those FXCM traders had followed the SSI's consistent signal, and had sold their US dollars against the loonie, they would now be on the right side of the trade.*
 
 
About FXCM Inc.
 
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers worldwide.
 
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution, and trading from real-time charts. FXCM's UK subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade forex, oil, gold, silver, and stock indices on one platform.
 
In addition, FXCM offers educational courses on forex trading and provides free news and market research.
 
TAGS: fxcm ssi  fxcm  forex  forex sentiment 

More news about FXCM

Forex
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5,
IRESSTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Market News

CFTC warns about 20 new forex and binary options scams

Dec 06 2019 17:46:44

The US Commodity Futures Trading Commission (CFTC) updated its warnings list with twenty new forex and binary options scam websites, bringing the total blacklisted websites to nearly 150. Read more

Thai authorities seize over 15 million baht from Forex-3D scammers

Dec 06 2019 10:38:02

  Officials from the Thai Department of Special Investigation (DSI) seized over 15 million baht from the owner of Forex- 3D Ponzi scheme and his associates, the Bangkok Post reported on Thursday. Read more

EU finance ministers agreed to block Libra

Dec 05 2019 13:46:59

EU finance ministers have agreed that  private digital currencies like Libra – the crypto coin Facebook plans to launch in 2020, should not be allowed in the European Union until all possible risks are identified and properly addressed, Reuters reports. Read more

CFTC looks for a binary options scammer who defrauded investors with $3,8 mln

Dec 03 2019 17:20:38

The United States Commodity Futures Trading Commission (CFTC) apparently can not locate Peter Szatmari, who defrauded nearly 4 million USD from binary options investors. Read more

Bulgarian court allows the extradition of Gal Barak to Austria

Dec 02 2019 17:51:14

After a successful operation of the police in Austria, Germany, the Czech Republic and Bulgaria has lead in February to the arrests of several financial executives, among which the Izraeli citizen Gal Barak, who is charged of orchestrating an online trading scam, that allegedly has defrauded Europea... Read more

Italy’s CONSOB blacklists EvolutionBrokers and KapitalSwiss

Dec 02 2019 15:30:33

   Italy's financial regulator Commissione Nazionale per le Societa e la Borsa (CONSOB) has blacklisted a bunch of unregulated brokers today, including EvolutionBrokers, and KapitalSwiss. CONSOB also ordered internet providers to block access to their websites. Read more

91 arrested in Indonesia over an online investment scam

Nov 29 2019 10:32:00

The Indonesian police has arrested 85 Chinese nationals and 6 Indonesians over an online scam that defrauded victims of over 36 billion Indonesian rupiah (2,56 million USD). Read more

Second person arrested in connection to OneCoin money laundering

Nov 28 2019 17:36:36

David R. Pike, a chief operating officer of Fenero Funds was arrested by the U.S. authorities in connection to laundering some 400 million USD, stolen through the notorious OneCoin Ponzi scheme.   Pike appears to have worked with the convicted OneCoin layer Mark S. Read more

UpBit hacked for $50 mln

Nov 27 2019 17:05:16

After a hacker attack South Korean crypto exchange UpBit has lost some 342 000 Ethereum (ETH) coins, equal to well over 49 million USD. The exchange has assured its clients that the loses will be covered by its own assets, but for the time being all withdraws have bees suspended. Read more

Charles Schwab buys TD Ameritrade for $26 bln

Nov 26 2019 18:01:43

Expected to be finalized in late 2020, the merger between two of the leading U.S. brokerage houses will create a mammoth company that will be in the position to challenge major financial rivals. Read more

de | cn | ru