Indeed, increasingly bullish crowd sentiment on the Euro/US Dollar pair has led our Speculative Sentiment Index-based “Momentum2” trading strategy to sell into crowd buying—taking a contrarian position to increasingly bullish traders. The trading signals have different price targets and maximum risk levels, but it seems that the confluence of such forecasts may in fact prove accurate if continued financial market turmoil leads to further US Dollar strength.
A study of a long-term Euro/US dollar chart suggests that the EURUSD’s drop below major trendline support may be enough to take it to similarly significant Fibonacci support levels near 1.3322.
Keep track of this EURUSD signal and others on our Forex Buy/Sell Signals on DailyFX+ and be sure to monitor any updates, as our automated forex signals can and do change on a daily and intraday basis.
For more information and guides on using our DailyFX Buy/Sell Signals, see our Weekly Forex Trading Strategy Outlook report.
Written by David Rodríguez, Quantitative Analyst for DailyFX.com
To contact the author of this report, e-mail drodriguez@dailyfx.com