Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURUSD – Retail traders had recently become their most short Euro on record, and we have consistently remained in favor of further rallies. Yet a significant shift warns that the EURUSD continues lower.
Trade Implications – EURUSD: Retail short interest in the Euro has fallen a significant 25 percent since last week, while long interest is up 30 percent. Timing major market reversals is very difficult, but the sharp shift has led our sentiment-based Momentum2 to sell the Euro from $1.3737.
It’s important to note that the vast majority of traders remain short—usually enough to keep us bullish. Yet our Senior Market Strategist notes that an aggressive EURUSD decline below $1.3655 may warn of a bigger correction.
— 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