Trade FOREX with FXCM

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

Resources

Substantial Swing in Forex Sentiment Warns of Euro Losses

By , Quantitative Strategist
15 May 2014 15:05 GMT
Substantial Swing in Forex Sentiment Warns of Euro Losses

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

EURUSDA substantial swing in Euro/US Dollar trader positioning warns that the Euro likely set an important top, and a continued shift in sentiment warns of further EURUSD losses.

Trade Implications – EURUSD: Last week we wrote of the risk of a Euro turnaround on the major shift in sentiment and noted that our purely sentiment-based Momentum2 trading strategy had sold from $1.3842.

The break below trendline support and the sharp shift in sentiment adds further conviction to our calls for declines. Our Senior Technical Strategist sees scope for a Euro depreciation into $1.3294. The fact that retail trader long positions have grown by a substantial 130 percent further warns of weakness.

See next currency section: GBPUSD - British Pound at Pivotal Price Levels, Next Move is Key

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

Substantial Swing in Forex Sentiment Warns of Euro Losses

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

15 May 2014 15:05 GMT