Euro Dips Could be Bought, Rallies Sold
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURUSD –The Euro seems unlikely to break significantly out of its recent trading range as volatility drops, and indeed our retail FX sentiment data shows traders have pulled back from recent extremes.
Trade Implications – EURUSD: Last week we cited high volatility and extreme retail trader sentiment as key reasons the Euro was likely to continue higher versus the US Dollar. Yet the EURUSD rally obviously proved short-lived and rendered our forecast premature at best.
Indecisive moves look likely to continue until we break significantly out of the recent $1.1270-1.1500 trading range. In the meantime, buying dips and selling rallies within this range seems a reasonable trading strategy.
See next currency section: GBPUSD - British Pound Forecast to Hit Further Highs
--- 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.