EURUSD – Retail trading crowds have sold the Euro as it breaks to multi-month highs against the US Dollar (ticker: USDOLLAR), and our contrarian retail sentiment-based strategies remain long EURUSD from last week.
Our proprietary Speculative Sentiment Index data shows that the number of retail traders short EURUSD outnumber those long by over 2 to 1, and indeed short interest is currently near its highest levels since February.
It’s admittedly difficult to advocate getting long EURUSD ahead of a critical US Federal Open Market Committee Rate Decision, but current momentum and our retail-based sentiment data favors buying recent 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 DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to drodriguez@dailyfx.com;
Contact David via Twitter athttp://www.twitter.com/DRodriguezFX
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.
