News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Euro Forecast to Bounce Within Broader Downtrend

Euro Forecast to Bounce Within Broader Downtrend

David Rodriguez, Head of Product
ssi_eur-usd_body_Picture_6.png, Euro Forecast to Bounce Within Broader Downtrend

EURUSD Forex trading crowds turned net-short the Euro against the US Dollar (ticker: USDOLLAR) as the pair first crossed above the $1.25 mark just weeks ago, and we have maintained a fairly consistent bullish bias as the pair corrects off of its lows. Retail traders had previously been net-long EURUSD since it broke below $1.30 in early May.

An important jump in short positions suggests that there may be further Euro strength in store. Indeed, total retail short interest is now at its highest since the Euro/US Dollar traded towards multi-month highs near $1.33 in late April/early May. Yet our technical euro forecast underlines our preference to sell any major rallies. Fundamental Euro outlook likewise remains bleak as markets shift focus to potentially pivotal Greek elections this weekend.

The Euro downtrend remains intact until we see unlikely breakthroughs in obvious European fiscal and financial crises. The EURUSD remains strongly linked to fast-falling European bond prices – likely to keep pressure on the Euro through the foreseeable future.

How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to drodriguez@dailyfx.com; Contact David via Twitter at http://www.twitter.com/DRodriguezFX

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

DISCLOSURES