Euro at Clear Risk of Bounce Near Key Support

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com - Euro at Clear Risk of Bounce Near Key Support

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

EURUSD – Retail FX Traders are currently their most long the Euro versus the US Dollar since it set a significant low near $1.28 in July, 2013, and extremely one-sided sentiment warns of a EURUSD bounce.

Trade Implications – EURUSD: Extreme retail positions often coincide with important turnarounds in price. This happened just recently as retail traders became their most short EURUSD on record, and the pair topped near $1.3960 through March.

Now crowds are heavily long as the Euro holds its post-European Central Bank lows. Combined with extremely low FX volatility, we believe it unlikely that the Euro breaks below $1.35.

See next currency section: GBPUSD - British Pound May Soon Break Above Key Highs

You May Also Like

Related Forex Analysis
  1. USD keeps failing to rally on positive data
    Forex News

    USD keeps failing to rally on positive data

  2. Session Recap: The status quo prevails; Dollar remains at its place
    Forex News

    Session Recap: The status quo prevails; Dollar remains at its place

  3. USD risks towards year-end? - Westpac
    Forex News

    USD risks towards year-end? - Westpac

  4. EUR/USD in choppy directionless day - FXStreet
    Forex News

    EUR/USD in choppy directionless day - FXStreet

  5. EUR/USD taking a breather around 1.2520/50 levels
    Forex News

    EUR/USD taking a breather around 1.2520/50 levels

Trading Center