Filed Under:
Forex pairs in this Article » EUR/USD
ssi_eur-usd_body_Picture_12.png, Euro Downtrend Seems Clear - We Like Selling StrengthEURUSD – Retail forex crowds have remained impressively short Euro against the US Dollar despite a sizeable EURUSD pullback. But the shift in positioning gives us clear contrarian signal for further declines.

Trade Implications – EURUSD: Our “Tidal Shift”/Momentum2 strategy went short EURUSD from last week at $1.3245 as crowds bought aggressively into sharp declines. The trade seems obvious in hindsight, but the truth is that I think the same SSI-based strategy stands to do well going forward—especially as market conditions might favor a Euro decline toward $1.20. Short-term declines seem a bit overdone and we’ll probably need to allow for a short-term EURUSD bounce, but the substantial shift in sentiment leaves us in favor of selling Euro strength.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

ssi_eur-usd_body_1a.png, Euro Downtrend Seems Clear - We Like Selling StrengthDownload all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com

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 http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

comments powered by Disqus
Trading Center