Euro Forecast favors Weakness

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

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

Euro Forecast favors Weakness

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