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We Want to Sell Euro but Need Two Things to Happen

By , Quantitative Strategist
03 October 2013 15:00 GMT
ssi_eur-usd_body_Picture_10.png, We Want to Sell Euro but Need Two Things to Happen

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EURUSDRetail FX traders are near their most short the Euro versus the US Dollar on record, warning of a potential sentiment extreme and major top. .

Trade Implications – EURUSD: It’s always tempting to join the crowd in selling the Euro at major extremes, but the data itself shows the dangers of trying to time a reversal: retail traders have been net-short Euro since it crossed above $1.29 in July.

Instead we’ll wait for concrete signs of a turn in price and sentiment. For the SSI that means watching the Momentum2 trading system, which is designed to catch big turns in trend. From a price perspective, our Senior Markets Strategist favors the topside as long as EURUSD remains above $1.3475.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

ssi_eur-usd_body_Picture_6.png, We Want to Sell Euro but Need Two Things to Happen

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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03 October 2013 15:00 GMT