FOREX ANALYSIS: Euro Forecast Remains Bullish
Our Euro forecast versus the US Dollar (ticker: USDOLLAR) remains bullish, as our proprietary retail forex trading sentiment indicator shows the majority of traders remain short EURUSD. It’s important to note that retail short interest has fallen 13 percent and long interest has gained 24 percent since last week—moderating our bullish bias.
Yet crowds first turned short the Euro as it crossed above the $1.25 mark through mid-September, and the fact that the majority of retail traders remain short gives us reason to continue calling for short-term strength.
Our Technical Strategist likewise calls for EURUSD strength as long as price remains above key support of $1.28.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.