Trade FOREX with FXCM

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

Resources

Euro Finally Makes the Move We’ve Been Watching

By , Quantitative Strategist
20 March 2014 13:00 GMT
ssi_eur-usd_body_Picture_19.png, Euro Finally Makes the Move We’ve Been Watching

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

EURUSDA major shift in retail forex trader sentiment warns that the Euro likely set an important price extreme and may continue lower.

Trade Implications – EURUSD: In the past weeks we’ve noted that crowds had never been more short the Euro. We typically go against the herd; if everyone’s short we prefer to be long and vice versa. Yet history will likewise show that the crowd is often the most short at the top and long at the bottom.

The fact that we’ve seen a material shift towards short covering and crowd buying suggests that the recent record short position did indeed coincide with a price top. Indeed our purely sentiment-based Momentum2 system is now short from $1.3826, and our technical focus leaves us watching for further Euro weakness.

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

ssi_eur-usd_body_Picture_6.png, Euro Finally Makes the Move We’ve Been Watching

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

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

20 March 2014 13:00 GMT