Euro at Potentially Significant Turning Point
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Trade Implications – EURUSD: The majority of retail traders have remained long EURUSD since it traded below $1.36, but a big jump in selling warns that traders may soon turn short. A contrarian view of herd sentiment has kept us looking for continued weakness, but a flip in those positions would point to strength. Key technical levels to watch are post-ECB highs at $1.2990, while a break below yearly lows of $1.2860 would negate our calls for a bounce.
See next currency section: GBPUSD - British Pound Won’t Go Quietly - Risk of Bounce Grows
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.