Euro Forecast to Fall Further as Retail Crowds buy Declines
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EURUSD – A notable shift in retail FX trader sentiment warns that the Euro may continue onto fresh lows versus the US Dollar. Our data shows 51 percent of current open retail open positions are long—almost exactly neutral. Since last week, however, long positions have risen 12 percent while short positions have fallen a comparable 11 percent.
The retail trading ‘crowd’ is buying into EUR/USD weakness, and a contrarian view gives us reason to believe it will continue lower.
See next currency section: GBPUSD - British Pound Declines May Slow, but Downtrend not Over Yet
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.