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

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    US Dollar Breakout Velocity Rests with Fed’s Liftoff Outlook after NFPs

  2. Forex News

    Metals & Petroleum products: CFTC Commitment of Traders Report - TDS

  3. Forex News

    EUR/USD survived the drop, US Payrolls on sight

  4. Forex News

    FX space for May break down - Scotiabank

  5. Forex News

    EUR/USD Retail FX Crowd Remains Net-Short Ahead of ECB June Meeting

Trading Center