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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Euro Crowds Remain Short – We Like Selling Post ECB

Euro Crowds Remain Short – We Like Selling Post ECB

David Rodriguez, Head of Product
ssi_eur-usd_body_Picture_6.png, Euro Crowds Remain Short – We Like Selling Post ECB

Retail FX traders have remained heavily short the Euro against the US Dollar (ticker: USDOLLAR) since the pair traded above $1.24, and a purely contrarian view of crowd sentiment favors further EURUSD strength. Yet as we wrote in our sentiment-based Euro forecast last week, our SSI works best as a contrarian indicator to price action when markets are trending.

Low FX volatility warns that the Euro could continue within a tight range against the US Dollar, and indeed a mostly disappointing European Central Bank interest rate decision leaves short-term EUR risks to the downside.

Key existential threats to the Euro in September could indeed keep pressure on the EURUSD until further notice, and we hesitate to go against the retail FX crowd as they sell into sudden Euro strength.

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

--- Written by David Rodriguez, Quantitative Strategist for

To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to; Contact David via Twitter at

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

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