Trade Implications – EURUSD: We’ll use our proprietary Speculative Sentiment Index data as a contrarian indicator to price action; if everyone’s selling, we’ll typically look to buy. And last week we claimed that a surge in EURUSD buying confirmed the top.
Our sentiment-based Momentum2 trading system did well in going short EUR from $1.3270, but we’ll need to see a further pickup in crowd EURUSD buying to feel confident in continued Dollar strength—particularly as the pair trades at its key 200-day Simple Moving Average.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.