Euro Likely to Fall Even Further versus US Dollar
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EURUSD – Retail forex traders continue to buy aggressively into Euro weakness versus the US Dollar, and a contrarian view of ‘crowd’ sentiment leaves us firmly in favor of selling EUR/USD weakness. Last week we wrote much the same with one key caveat: the EUR may yet remain in its relatively narrow year-to-date trading range.
If history is any guide, we may expect the EUR/USD to match previous patterns and continue through to fresh lows trough near-term trading. And indeed we see little reason to abandon our bearish trading bias as long as our retail trader positioning data shows ‘the crowd’ continues to buy.
See next currency section: GBPUSD - British Pound Remains a Sell until this Changes
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.