Euro at Major Inflection Point
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EURUSD – An important shift in forex trader sentiment warns that the Euro may soon bounce versus the high-flying US Dollar.
Trade Implications – EURUSD: The majority of retail traders have remained long EURUSD since it traded below $1.36, but traders have actually shifted towards selling in recent weeks. Last week we warned that the Euro would likely bounce as long as price remained above $1.2860. Traders briefly sent the EURUSD to fresh lows, but a fresh divergence in price and sentiment suggests that declines may not last. If we see traders turn net-short Euro, it would help confirm that a reversal is underway.
See next currency section: GBPUSD - GBP May Bounce, but Wait until After Scotland
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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