Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

Euro at Important Danger of Declines

By , Quantitative Strategist
20 February 2014 16:00 GMT
ssi_eur-usd_body_Picture_12.png, Euro at Important Danger of Declines

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

EURUSDRetail forex traders remain exceedingly long the US Dollar across the board, and indeed the crowd remains near its most short EURUSD since the pair set an important top in December.

Trade Implications – EURUSD: We typically go against the crowd; if everyone has sold we prefer to buy. Yet retail traders are often their most short at important tops and their most long at significant lows. The caveat is clear: the sentiment and price extreme is only clear in hindsight.

The fact that these extremes are happening as the pair reverses off of important technical resistance nonetheless suggests that the EURUSD may soon reverse lower. A larger shift towards crowd buying would help confirm the EUR top; our sentiment-based Momentum2 strategy may soon sell if the pair does indeed turn lower.

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

ssi_eur-usd_body_Picture_6.png, Euro at Important Danger of Declines

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

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.

20 February 2014 16:00 GMT