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Euro Likely in Major Reversal, but Pace of Losses May Slow

Euro Likely in Major Reversal, but Pace of Losses May Slow

David Rodriguez, Head of Product
ssi_eur-usd_body_Picture_12.png, Euro Likely in Major Reversal, but Pace of Losses May Slow

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EURUSDThe 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

ssi_eur-usd_body_Picture_6.png, Euro Likely in Major Reversal, but Pace of Losses May Slow

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

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