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EURUSD – Retail FX traders continue selling aggressively into Euro strength, and a contrarian view of crowd sentiment leaves us steadily in favor of EURUSD gains.
Trade Implications – EURUSD: A quiet month of April has kept the single currency in a tight range, and though it trades near multi-year highs we note that EURUSD upward momentum is slowing.
As long as crowds continue selling we’ll continue to watch for further Euro gains. Our Senior Technical Strategist writes that a Euro test of resistance at $1.3966 and perhaps $1.4000 seems likely before an important reversal.
See next currency section: GBPUSD - British Pound Likely to Trade to Fresh Peaks
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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