Euro Sets Potentially Significant Low versus US Dollar
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Trade Implications – EURUSD: The timing on an important Euro bounce has eluded us as the EUR plunged to fresh lows. And yet a major shift in the past week suggests we may very well be at the start of an important correction higher. Our retail trader data shows that ‘the crowd’ recently turned net-short EURUSD for the first time in nearly 1000 pips and three months.
Our market cycle specialist highlights the risk of an important short squeeze in the Euro, and a break above $1.2750 favors a move up to the key $1.3000 mark.
See next currency section: GBPUSD - British Pound May Rally Further versus USD
--- 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.