Euro Likely to Trade to Fresh Highs Versus Dollar
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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
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.