Euro Breakdown is the Real Deal
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EURUSD – A substantial shift in retail forex positioning warns that the Euro may have made a lasting turn lower versus the US Dollar. Our data shows that traders had remained net-short for seven months as the EUR/USD rallied off of multi-year lows—acting as a contrarian signal that the pair could continue higher.
Yet yesterday we saw traders turn net-long for the first time since March, and the combination of a shift in sentiment and the major technical breakdown suggests the Euro may continue to trade lower. A hold below key support at $1.1070 keeps us bearish.
See next currency section: GBPUSD - British Pound Forecast to Fall Further versus Dollar
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.