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
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;
New to FX markets? Learn more in our video trading guide.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.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.
