Euro Forecast to Strengthen Further versus US Dollar
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EURUSD – Retail FX traders remain heavily short the Euro versus the US Dollar as nearly two-thirds of all trades in our sample are currently short. We typically take a contrarian view to ‘crowd’ sentiment, and the fact that traders have sold means we will look for further EUR/USD strength. A minor caveat is that traders have grown less short since yesterday; the total open long positions has grown by 26 percent as the Euro pulls back from recent highs.
It would nonetheless take a more substantive shift to shake us from our long-standing EUR-bullish trading bias. And indeed, a break above key technical resistance at $1.1415 would make fresh highs near $1.16 likely.
See next currency section: GBPUSD - British Pound Looks Likely to Rally Further
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.