Euro at Clear Risk of Bounce Near Key Support
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURUSD – Retail FX Traders are currently their most long the Euro versus the US Dollar since it set a significant low near $1.28 in July, 2013, and extremely one-sided sentiment warns of a EURUSD bounce.
Trade Implications – EURUSD: Extreme retail positions often coincide with important turnarounds in price. This happened just recently as retail traders became their most short EURUSD on record, and the pair topped near $1.3960 through March.
Now crowds are heavily long as the Euro holds its post-European Central Bank lows. Combined with extremely low FX volatility, we believe it unlikely that the Euro breaks below $1.35.
See next currency section: GBPUSD - British Pound May Soon Break Above Key Highs
--- 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.