Euro Likely to Hit Fresh Lows versus Resurgent Dollar

By DailyFx | Updated 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

You May Also Like

Related Forex Analysis
  1. Dollar and Yields Slide Despite Improved US Data
    Forex News

    Dollar and Yields Slide Despite Improved US Data

  2. EUR/USD: Firmer foundation to buy dips after 1.2445 breakout
    Forex News

    EUR/USD: Firmer foundation to buy dips after 1.2445 breakout

  3. EUR/USD charts indicate the possibility of rebound – RBS
    Forex News

    EUR/USD charts indicate the possibility of rebound – RBS

  4. Video: Event Risk Can Set Off Volatility, but Carry Trends?
    Forex News

    Video: Event Risk Can Set Off Volatility, but Carry Trends?

  5. EUR/USD indicates possibility of rebound - RBS
    Forex News

    EUR/USD indicates possibility of rebound - RBS

Trading Center