Euro Tumbles Likely to Continue Until this Changes
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EURUSD –The Euro has plunged to fresh 11-year lows versus the US Dollar, and one-sided retail FX trader positions point to continued EURUSD declines.
Trade Implications – EURUSD: Our trader sample shows that the majority of traders remain long the Euro versus the US Dollar, and until that changes we will maintain our contrarian calls for EURUSD losses. It bears mention that total long interest has fallen since last week (-15%), but net positioning remains steady as short interest has pulled back further (-22%).
The slowdown in buying suggests exhaustion is beginning to set in and raises the risks of a short-term bounce. Yet we’ll need to see much more concrete signs of turnaround before calling for a sustained reversal.
See next currency section: GBPUSD - British Pound Shows Signs of Life on Key Reversal Signals
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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