Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURUSD – Retail forex traders continue buying into Euro weakness against the US Dollar, and this acts as contrarian signal that the pair may continue lower.
Trade Implications – EURUSD: Last week we highlighted that forex traders were previously their most net-short EURUSD on record, which gave us a cautiously bullish contrarian bias. Yet the potential for a sentiment was real; crowds are often on the ‘right’ side of the trade at major tops/bottoms.
Total retail long positions are up a substantial 60 percent in the past 30 days, and the sharp swing helps confirm that the EURUSD may have set an important top. Our purely sentiment-based Momentum2strategy most recently sold from $1.3685 and $1.3582 as crowds buy. And indeed our Senior Currency Strategist updates key support and potential price targets to the downside.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at https://www.twitter.com/DRodriguezFX
Facebook at https://www.Facebook.com/DRodriguezFX