Clear Euro Direction May Wait Break of $1.2875
EURUSD – Choppy price action has led to similarly directionless forex trader sentiment, and Euro/US Dollar positioning is mostly unchanged since last week. The fact that trading crowds have most recently bought into EURUSD declines gives us a modestly bearish bias.
Trade Implications – EURUSD: Our SSI-based ‘Momentum2’ most recently bought the Euro only to be stopped out as the pair broke lower. Our sentiment-based trading strategies tend to do well in times of strong volatility and/or market trends, and we may need to see a EURUSD break above $1.3064 or below $1.2875 to see an acceleration in either direction.
--- 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.