Euro Forecast to Continue Rallying versus US Dollar
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EURUSD – Aggressively one-sided retail FX trader positions continue to act as a contrarian signal that the Euro may rally further versus the US Dollar. And indeed it was last week we warned that a violent post-ECB Euro surge and shift in trader sentiment pointed to further EUR/USD gains.
Our data shows that there are currently 1.44 retail open positions short the EUR/USD for every 1 that is long; nearly 60 percent of traders in our sample our short. This stands in sharp contrast to just two weeks ago when many of the traders had remained consistently net-long into Euro tumbles. Until we see a comparable shift in sentiment, we will continue to favor buying into EUR/USD rallies.
See next currency section: GBPUSD - British Pound Rally May Represent Key Turning Point
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.