Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURUSD – Retail FX traders continue selling into recent Euro gains, and a contrarian view of crowd sentiment leaves us firmly in favor of further EURUSD strength.
Trade Implications – EURUSD: Total open EURUSD-short positions outnumber longs by nearly 2 to 1. This is a far cry from the 5 to 1 we saw as the Euro traded to $1.3830, but we’ve seen a 24 percent week-over-week gain in short positions while longs have fallen by 12 percent.
Our sentiment-based Momentum2 strategy most recently went long from $1.3450 only to get stopped out at a modest loss. The strategy nonetheless seems likely to continue buying into Euro strength.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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