Forex Analysis: Trading Strategies Go Long EURUSD
EURUSD – Retail forex trading crowds continue to buy the US Dollar (ticker: USDOLLAR) against the Euro, and a contrarian view of popular sentiment leaves us in favor of further EURUSD gains. There remain more than 2.4 traders short Euro for every one that is long.
Trade Implications – EURUSD: Recently choppy price action and trader positioning actually forced one of our sentiment-based trading strategies to sell EURUSD from $1.3285, but that position may be short-lived as the Euro seems poised to break highs. We generally favor buying EURUSD dips amidst one-sided crowd sentiment.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.