Euro Breakdown in Doubt as Crowds Lack Conviction
EURUSD – Retail forex trading crowds have added to Euro long positions versus the US Dollar (ticker: USDOLLAR), but a failure to break lower suggests the EURUSD may consolidate through near-term trade.
Trade Implications – EURUSD: Our SSI-based ‘Momentum2’ strategy sold the Euro as trading crowds bought aggressively into declines. Yet mostly sideways price action meant that the position was closed out at only a modest gain. Further technical evidence suggests that the EURUSD may in fact turn higher, and our overall sentiment-based bias is neutral as a result.
--- 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.