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EURUSD – Retail FX traders have bought aggressively into recent Euro weakness against the US Dollar, and a contrarian view of ‘crowd’ sentiment leaves us watching for further EUR/USD declines. The key caveat is straightforward—the EUR has thus far remained above key support near seven-month lows of $1.09.
A sustained breakdown could ‘launch’ a much more important decline towards year-to-date lows and eventually decade-plus support near $1.05.
In the meantime we will keep a close eye on how the EUR/USD trades at key support levels, and as long as ‘the crowd’ continues to buy we will call for further weakness..
See next currency section: GBPUSD - British Pound Remains a Sell until this Changes
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