Euro at Clear Risk for Further Declines
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EURUSD – The Euro has fallen sharply against the US Dollar, and our retail FX trader sample shows that traders are buying into EUR/USD declines. Traders remain marginally net-short as they have been since the EUR traded to $1.40 through May, 2014. Yet the most recent shift towards buying acts as contrarian signal that the Euro may continue lower.
Ideally we would see a more pronounced shift in sentiment before turning in favor of selling into Euro weakness, but as it stands we may be at the cusp of a much larger turn lower for the EUR/USD.
See next currency section: GBPUSD - British Pound Forecast to Hit Fresh Lows
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.