Euro Forecast Calls for Continued Strength
EURUSD – Retail forex traders continue to sell aggressively into Euro strength, and indeed our proprietary Speculative Sentiment Index data supports calls for further EURUSD gains. It is worth noting that total short interest is down 7 percent from last week, but we likewise see that crowds sold aggressively into the overnight Euro bounce.
Buying EURUSD against its lows lines up with our broader trading strategy bias, and indeed the Euro survived a key test as it held important price support in overnight trading.
Crowds turned net-short Euro as it crossed above the $1.25 mark in mid-September, and we see little reason to stray from our contrarian call for further gains.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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