Euro Forecast to Fall Towards $1.1875
Retail forex trading crowds remain their most net-long Euro against the US Dollar (ticker: USDOLLAR) since the single currency broke below $1.25 through the final week of May. The total level of trader long interest continues to grow, and indeed our proprietary retail trader-based Speculative Sentiment Index data shows that there are 1.8 orders long EURUSD for every short.
Retail trading crowds have remained steadily net-long EURUSD since the pair broke below $1.25, and the fact that buying continues gives us little reason to expect any significant pullback.
The EURUSD break to fresh multi-year lows gives us further confidence in our bearish outlook. Several of our SSI-based trading strategies remain short Euro from 1.2277-1.2425, and we expect the pair may decline further through short-term trading.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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