Major FX Shift Warns Euro may have Topped versus US Dollar
- Forex traders have shifted from a record Dollar long to selling into its recent bounce
- European currencies are particularly at risk of further weakness
- Beginning of the New Year may set the pace for the rest of 2014
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Weekly Summary of Forex Trader Sentiment and Changes in Positioning
Retail forex traders have bought aggressively into recent Euro weakness versus the US Dollar, and the substantial shift in forex sentiment warns that the EURUSD may yet continue lower. Indeed last week we highlighted that ‘the crowd’ was at its most net-short Euro on record. Yet many of the same traders seem to have capitulated and are now buying into the EUR tumble.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.