Euro Finally Shows Signs of a Lasting Turn
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EURUSD – The Euro has bounced considerably versus the Dollar, and retail FX traders in our sample have sold aggressively into gains. The sharp shift suggests the EURUSD could see further upside.
Trade Implications – EURUSD: Trader positioning and sentiment has been exceptionally choppy in recent weeks, but we have maintained a mostly bearish Euro trading bias given a clear broader downtrend. Since last week, however, we’ve seen short positions jump higher while long positions are down.
Ideally we would see a sustained shift towards retail crowd selling before buying into EURUSD gains, but early signs suggest that the single currency may have set a lasting low versus the US Dollar.
See next currency section: GBPUSD - British Pound Declines Slow but not Over Yet
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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