Euro Forecast to Fall even Further until this Changes
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EURUSD – One-sided retail forex trader sentiment warns that the Euro may continue lower versus the US Dollar. Last week we wrote that a substantive shift in trader positions suggested the EUR/USD breakdown was “the real deal”. And indeed the FX ‘crowd’ continued to buy into EUR declines through this past week—providing contrarian signal that further Euro losses remain likely.
The recent spike-low at $1.0900 remains the first downside target, while a break below mid-year price floors near $1.0800 would likely force a test of multi-year highs near $1.0400.
See next currency section: GBPUSD - British Pound Remains at Risk of Further Declines
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.