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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Euro Remains Likely to Test Key Highs

Euro Remains Likely to Test Key Highs

2016-04-28 16:15:00
David Rodriguez, Head of Product
Share:
Euro Remains Likely to Test Key Highs

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

EURUSD – Retail FX traders are net-short the Euro versus the US Dollar and have remained short since the pair set a key low near $1.09 in early March. A contrarian view of ‘crowd’ sentiment leaves us with a firmly bullish trading bias as retail traders remain short.

The clear caveat is simple—going against the majority of retail traders only works when markets move against them. Past performance is not indicative of future results, but our data suggests that going against the crowd has been a winning strategy overall. Yet the same data shows retail traders tend to outperform in slow-moving market conditions. In practice this means that our contrarian trading strategy can do poorly in low-volatility/range-bound market conditions.

We will remain cautiously bullish the Euro as long as crowds remain short, but it is important to note this strategy may underperform if the EUR/USD continues to trade in a narrow range.

See next currency section:GBPUSD - Recent Moves Confirm End to British Pound Downtrend

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 http://www.twitter.com/DRodriguezFX

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

DISCLOSURES