Euro at Clear Risk for Further Declines
View Real-Time SSI Updates via the FXCM Trading Station Desktop
See a video on why we use the Speculative Sentiment Index as a contrarian indicator in our trading
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
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