Our SSI-based “Momentum2” system recently bought the EUR/USD at 1.3732 and is currently floating a loss. Yet a bounce towards trend channel resistance could see the pair rally to 1.3800 before the potential for retracement. One key risk to this trade remains the fact that our contrarian Speculative Sentiment Index indicator signals that the trading crowd is growing increasingly long the EURUSD—a word of caution against expecting sharp rallies.
Keep track of these US Dollar trading signals 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