Euro Sticks to Key Range for Now – Here’s What We’re Watching
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EURUSD – Retail FX traders remain short the Euro versus the US Dollar and have remained short since the pair traded above the $1.10 mark through late July. A contrarian view of ‘crowd’ sentiment continues to call for further EUR/USD gains.
The clear caveat is as we noted last week: “a key sticking point is that retail traders often do well in slow-moving and range-bound market conditions.” And indeed our data shows the ‘crowd’ has caught the last key turns as the Euro remains stuck in a tight trading range.
As long as the Euro continues to trade in a tight range we see little value in taking a contrarian position to retail FX traders. Our Senior Technical Strategist warns against becoming too complacent, however; this could very well prove the calm before a major EUR/USD breakout.
See next currency section: GBPUSD - British Pound Looks likely to Hold Key Support
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.