We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.52%, while traders in US 500 are at opposite extremes with 74.73%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/2zuDQFrljo
  • Fed Discount-Rate Meeting Minutes: - Directors reported noteworthy declines to economic activity, particularly in retail, tourism, and travel industries - Several directors expect jobless rate to increase further in coming months $DXY $SPX
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.48% US 500: 0.58% FTSE 100: 0.16% Germany 30: -0.05% France 40: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qJvZxDmmST
  • Dow Jones Index strength continues in afternoon trading, as recovery hopes spur risk appetite $DJI https://t.co/4M6CoMdyGn
  • $USDCAD dives to lowest level since March 15 on USD weakness https://t.co/8abAuksdMo
  • #Equities: US futures on the front-foot with market participants returning from their elongated break, which in turn sees the S&P 500 pierce the psychological 3000. Get your #equities market update from @JMcQueenFX here: https://t.co/7O447VkToZ https://t.co/TyXEaPVnbb
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
  • it's time for the webinar, starting right now https://www.dailyfx.com/webinars/1338844901231735299 https://t.co/gLQFjotDmG
  • Senate Majority Leader McConnell says drop in revenue for States a concern, but national debt is also concerning- BBG
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
Going Long EURUSD Against the Lows

Going Long EURUSD Against the Lows

2012-07-25 13:06:00
David Rodriguez, Head of Product

I've been talking up Euro reversal risk since last week (watch my justification via recorded euro forecast webinar), and I've only been waiting for a turnaround in retail forex trading sentiment.

Have we gotten there? Not quite. Our proprietary Speculative Sentiment Index data shows that there are still more retail traders long Euro than short. This is normally a contrarian bearish signal--going against crowd sentiment. Yet the SSI ratio wen t from 1.9 traders long EURUSD per 1 short yesterday to 1.3:1 at time of writing.

I'm jumping the gun a bit here, but I like the fact that the Euro has broken to fresh 24-hour highs and RSI hit overbought for the first time in a week on a 60-min chart. A bit risky to anticipate a flip in sentiment, but I like the risk/reward on a long against the EUR lows.

I went long from 1.2136 as per the Real Time News feed, stop below the lows of 1.2043. Targets open at this point, but I'm looking at a minimum 1:1 risk reward which would put me at 2230. I may trail my stop if/when we get there, but I'm unlikely to take partial profit as I think the EURUSD could make a larger run higher here. - David Rodriguez, Quantitative Strategist for DailyFX.com

To get trade ideas and research from this author via e-mail, send a message with subject line "Distribution List" to drodriguez@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.