Euro May Have Set Important Low Following ECB Rate Cut
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURUSD – The Euro may have set an important low as it stopped and reversed near $1.35; our proprietary retail volume data showed the biggest spike in transactions since the last major Euro bottom near $1.33.
Trade Implications – EURUSD: There was a tremendous sense of déjà vu as the European Central Bank cut rates, the Euro tumbled, retail FX volumes surged, and yet the EURUSD seemed poised to hold key lows.
Crowds are solidly short Euro as it reverses from key lows, and further traction above key congestion near $1.3650 would instill confidence that the pair has set an important low. Key price and time cycles likewise suggest the Euro is at a key inflection point.
See next currency section: GBPUSD - British Pound Remains at Risk of Further Declines
--- 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.