Euro Bounce May be Short-Lived as Sentiment Unchanged
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Trade Implications – EURUSD: Traders in our sample are once again net-long the Euro versus the US Dollar, and a contrarian view of crowd sentiment leaves us with a contrarian bearish trading bias. It is worth noting that sentiment has been especially choppy in recent weeks—positions have flipped between net-long and net-short on a regular basis.
Yet we’ve interestingly not seen a more sustained shift even following the post-European Central Bank meeting bounce. Until sentiment changes we see little reason to expect a meaningful EURUSD reversal.
See next currency section: GBPUSD - British Pound Forecast to Hit Further Lows versus USD
--- 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.