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EURUSD – Retail FX traders continue buying aggressively into Euro weakness versus the US Dollar, and a contrarian view of crowd sentiment keeps us watching for EURUSD losses.
Trade Implications – EURUSD: Our trader sample shows that crowds are near their most net-long the EURUSD since it traded below $1.30 through early September, and as long as traders continue to buy we’ll watch for further weakness.
Our Senior Market Strategist warns that failure to finish below $1.2000 leaves the EURUSD at risk of a short-term bounce. We would nonetheless need to see an important shift in retail FX sentiment before calling for a sustained reversal.
See next currency section: GBPUSD - British Pound Forecast to Fall even Further versus Dollar
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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