Euro at Clear Risk of Bounce Near Key Support

By DailyFx | June 12, 2014 AAA

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

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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

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