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Euro Forecast favors Weakness

Euro Forecast favors Weakness

David Rodriguez, Head of Product
Euro Forecast favors Weakness

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EURUSDThe Euro continues to decline as we’ve seen a substantial swing in retail forex crowd sentiment. And indeed the lasting turn suggests that the EURUSD is likely to fall to further lows.

Trade Implications – EURUSD: Retail FX traders were recently their most short Euro since it topped near $1.3970 in March. Such one-sided sentiment extremes are often signs of a potential turnaround, and indeed the price and positioning reversal helps confirm that the single currency likely set an important high.

Fairly sharp declines leave the Euro at risk of short-term bounce, but our Senior Strategist writes that forex cycles favor EURUSD weakness through at least the next week. Failure to close above $1.3820 keeps our focus to the downside.

See next currency section: GBPUSD - We Favor British Pound Gains Until this Level Gives Way

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Euro Forecast favors Weakness

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

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