We Want to Sell Euro but Need Two Things to Happen
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Trade Implications – EURUSD: It’s always tempting to join the crowd in selling the Euro at major extremes, but the data itself shows the dangers of trying to time a reversal: retail traders have been net-short Euro since it crossed above $1.29 in July.
Instead we’ll wait for concrete signs of a turn in price and sentiment. For the SSI that means watching the Momentum2 trading system, which is designed to catch big turns in trend. From a price perspective, our Senior Markets Strategist favors the topside as long as EURUSD remains above $1.3475.
--- 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.