Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Euro Forecast turns Bearish on Post-Fed Tumbles

Euro Forecast turns Bearish on Post-Fed Tumbles

David Rodriguez, Head of Product


Why and how do we use the SSI in trading? View our video and download the free indicator here

EURUSD – An impressive post-Federal Reserve reversal in the US Dollar has led to a similar turn in retail forex sentiment, and indeed we see risks that the EUR/USD may have set a short-term peak near the $1.1050.

In the past two weeks we’ve highlighted the fact that the majority of retail FX traders in our sample have remained short the Euro versus the US Dollar. When most are short, we most often look to take the opposite side of the trade and look for buying opportunities, and indeed that has worked reasonably well given a major shift in EUR/USD sentiment.

Yet crowds are now almost squarely neutral—a mere 52 percent of traders are short—as total open long positions have risen 14 percent while open short positions have fallen by the same amount since last week. The sharp shift warns that the Euro may have set an important short-term high, and risks remain to the downside through near-term trading.

See next currency section: GBPUSD - British Pound at Risk for Further Declines

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.