Euro Likely in Major Reversal, but Pace of Losses May Slow
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURUSD – The Euro likely set an important price and sentiment extreme as it reversed from the $1.3970 high, but subsequent consolidation in both the EURUSD and trader positions suggests losses may slow.
Trade Implications – EURUSD: Last week we argued that a material shift in retail FX trading crowd sentiment favored a similarly significant Euro reversal. And indeed the pair has held key highs.
Yet the lack of follow-through in both price and sentiment combined with extremely low forex volatility prices suggests that the pair may stick to its recent trading range. Our technical forecast remains short-term bearish as long as the pair remains below reaction highs at $1.3875.
--- 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.