News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Euro Likely Set Important Bottom as Crowds Give up Post-ECB

Euro Likely Set Important Bottom as Crowds Give up Post-ECB

David Rodriguez, Head of Product
ssi_eur-usd_body_Picture_14.png, Euro Likely Set Important Bottom as Crowds Give up Post-ECB

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

EURUSDA massive decline in the Euro/US Dollar has been met with an aggressive wave of retail FX profit-taking, leaving crowds at their least net-short Euro since it traded to $1.31 in November. A sharp build in crowd selling following the European Central Bank interest rate decision might actually favor a short-term bottom in the EURUSD.

Trade Implications – EURUSD: According to our retail FX data, retail traders have aggressively sold into the Euro bounce off of the post-ECB lows. In the past several weeks our strategy forecasts and sentiment-based trading systems have done well to sell into EURUSD weakness. Yet a significant crowd capitulation warns that the Euro may have set a short-term low, and indeed our Senior Technical Strategist Jamie Saettele points out that the pair has now filled a significant price gap and bounced sharply.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

ssi_eur-usd_body_Picture_8.png, Euro Likely Set Important Bottom as Crowds Give up Post-ECB

Automate our SSI-based trading strategies via Mirror Trader free of charge

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 http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES