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. Forex News

    Euro Shrugs Off Widely Expected Greek Election Outcome

  2. Forex News

    EUR/USD flirts with 1.12 handle

  3. Forex News

    EUR falls to 11-year lows after overwhelming victory by Syriza in Greece – TradeTheNews

  4. Forex News

    EUR/USD on its way to retest 1.1200

  5. Forex News

    Post-ECB fallout and positioning – TDS

Trading Center