Euro Looks Likely to Test Monthly Peaks
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Trade Implications – EURUSD: Last week we highlighted a potential retail sentiment extreme as a key reason the Euro may bounce; the trading herd was extremely long EURUSD and one-sided positions pointed to a reversal.
Now crowds have sold aggressively into the Euro rally, and it seems likely that the pair continues onto test recent highs near $1.3675. A break above the June high would shift our overall bias in favor of Euro strength.
See next currency section: GBPUSD - British Pound Could Rally into $1.7300
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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