Euro Bounce Presents Attractive Selling Opportunity
EURUSD – Retail forex traders have recently been selling into Euro strength against the otherwise-resurgent US Dollar—normally enough to make us bullish. But we still generally favor USD strength.
Trade Implications – EURUSD: Last week we wrote that we were plainly in favor of further Euro weakness against the high-flying USD. And though we’ll never make a habit of ignoring important shifts in retail sentiment, the fact that the US Dollar looks to take out fresh highs suggests this is a minor EURUSD correction and potentially an opportunity to sell.
Only a EURUSD break above $1.3028 would shift our bearish trading bias.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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