Euro at Clear Risk of Further Declines
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Trade Implications – EURUSD: Two weeks ago we highlighted key risks of an important Euro bounce as a substantial shift in retail positions pointed to further EUR strength and USD weakness. And indeed the single currency bounced as the Greenback lagged. Since then we’ve seen crowds buy aggressively into the Euro’s test of key lows near $1.2600, and a steady build in long interest leaves the EURUSD downtrend intact. A break below $1.2585 would further instill confidence in our calls for further weakness.
See next currency section: GBPUSD - British Pound Remains a Sell versus the Dollar
--- 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