Euro Likely to Stick to Range, but Watch for Major Break Higher
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EURUSD – Mixed retail FX trader sentiment makes it difficult to establish a strong Euro trading bias, and indeed it seems as though the EUR/USD will stick to a narrow range through the foreseeable future. Last week we noted a shift in ‘crowd’ positions as a key reason the Euro would trade sideways to lower. Little has changed since then, and overall we continue to favor much of the same.
But the fact that little has changed is arguably what’s worth noting—the ‘crowd’ is not buying into EUR/USD weakness. This in itself runs counter to typical to experience; we most often see traders buy weakness and sell strength. Reluctance to buy into EUR/USD declines may thus act as contrarian signal that the Euro stands to rally sharply when and if the uptrend resumes.
See next currency section: GBPUSD - British Pound Forecast Calls for Continued Weakness
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.