Euro Targets 2010 Lows as Dollar Surges
EURUSD – Forex trading crowds continue to buy aggressively into Euro declines as it hits fresh yearly lows against the US Dollar, and such one-sided sentiment favors further EURUSD weakness. Trader sentiment recently hit its most net-long levels on the Euro/US Dollar since the pair broke below the $1.40 mark through late 2011.
Today we see that EURUSD-long interest has fallen from its very recent peaks, but overall the direction of trend seems clear and we see little reason or anything beyond normal short-term corrections higher within broader declines.
Our Speculative Sentiment Index-based strategies continue selling into Euro weakness, and indeed we continue watching for opportunities to sell Euro on rallies within the clear downtrend.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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