ssi_eur-usd_body_Picture_10.png, Euro Unlikely to Break Highs - We Like Selling Strength

EURUSD – Forex trading crowds remain short the Euro versus the US Dollar, but a noteworthy build in long positions suggests that the EURUSD could in fact head lower through near-term trading.

Trade Implications – EURUSD: Yesterday we cited low FX market volatility as a key reason the pair was unlikely to press to fresh highs—making it an attractive short position. By that same token we can’t wholeheartedly advocate selling aggressively into weakness; during slow-moving markets, currencies are less likely to break substantively higher or lower.

Our SSI-based trading strategies are currently flat the Euro against the US Dollar, but we remain mostly in favor of selling into significant strength against the month-to-date high of $1.3242.

--- Written by David Rodriguez, Quantitative Strategist for

ssi_eur-usd_body_1a.png, Euro Unlikely to Break Highs - We Like Selling Strength

Download all of our Sentiment-based trading strategies free via an ongoing promo on

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at

Facebook at