Signs of Danger - Has Euro Trend Turned?
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EURUSD – Retail FX traders remain net-short the Euro versus the US Dollar, and a contrarian view of ‘crowd’ sentiment broadly points to EUR/USD gains. Yet we have seen a noteworthy shift since last week; total open short positions have fallen by approximately 25 percent while long positions are up the same amount.
The fact that traders remain short suggests the EUR trend remains higher, but caution is urged against joining the crowd in buying into the recent slide. Special attention is warranted near key EUR/USD support near $1.11 as a break could indicate the end of the recent uptrend.
Further breakdown and continued retail crowd buying would give us little option but to turn bearish the Euro versus the US Dollar.
See next currency section: GBPUSD - British Pound Once again at Brink - Now What?
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.