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. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends
    Forex News

    Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends

  3. US Session recap: USD consolidation ahead of FOMC
    Forex News

    US Session recap: USD consolidation ahead of FOMC

  4. A market in a technical snap-shot - RBS
    Forex News

    A market in a technical snap-shot - RBS

  5. EZ gave mixed data at key timings - BBH
    Forex News

    EZ gave mixed data at key timings - BBH

Trading Center