Euro Reversal Gains Credibility as Crowds Sell
EURUSD – Retail forex speculators have mostly bought into Euro weakness against the US Dollar (ticker: USDOLLAR), but a failure to break lower suggests the EURUSD may continue to trade higher as it holds $1.30.
Trade Implications – EURUSD: Our SSI-based ‘Momentum2’ strategy bought the Euro at $1.3071 as crowds most recently sold into the EURUSD bounce, and indeed it seems as though we may see further short-term upside in the resilient pair. The Euro break above $1.3074 suggests a rally towards $1.3300 is likely.
--- 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.