Euro Likely to Hit Fresh Lows versus Resurgent Dollar

By DailyFx | August 21, 2014 AAA

DailyFX.com - Euro Likely to Hit Fresh Lows versus Resurgent Dollar

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

EURUSD – FX trading crowds remain heavily long the Euro versus the US Dollar, and a contrarian view of crowd sentiment leaves us in favor of further EUR/USD declines.

Trade Implications – EURUSD: Total retail long interest in the EURUSD remains near record levels, while net positions are matching extremes last seen in 2012 as the Euro traded near the $1.20 mark. Until we see material signs of sentiment reversal we see little choice but to favor continued weakness. Yet it bears mention that professional trader positioning is likewise near its most extreme since 2012; the pace of losses is likely to slow.

See next currency section: GBPUSD - British Pound Remains at Risk for Key Reasons

comments powered by Disqus
Related Forex Analysis
  1. USD/JPY in no mood for deep decline; settled at 108.80
    Forex News

    USD/JPY in no mood for deep decline; settled at 108.80

  2. EUR/USD attempts to develop upside correction
    Forex News

    EUR/USD attempts to develop upside correction

  3. Pound has room to extend latest gains - JPMorgan
    Forex News

    Pound has room to extend latest gains - JPMorgan

  4. USD positioning largely unchanged in the lead-up to FOMC - ANZ
    Forex News

    USD positioning largely unchanged in the lead-up to FOMC - ANZ

  5. EUR/USD bears in full control - JPMorgan
    Forex News

    EUR/USD bears in full control - JPMorgan

Trading Center