Euro Rallies Seem a Little too Obvious
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Trade Implications – EURUSD: Extremes are only clear in hindsight, and as such the consistent crowd Euro selling has actually kept us bullish for some time now. In fact our sentiment-based Momentum2strategy remains long from $1.3649.
Yet the record net-short position warns that further EURUSD upside will likely be limited. It’s unusual to see currencies stage major reversals mid-month, but there’s high risk of a near-term top heading into the final weeks of December and the calendar year.
--- 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.