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 crashes below 106.50, more downside in store
    Forex News

    USD/JPY crashes below 106.50, more downside in store

  2. Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude
    Forex News

    Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

  3. EUR/USD bulls wake up and drive pair above 1.2800
    Forex News

    EUR/USD bulls wake up and drive pair above 1.2800

  4. Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?
    Forex News

    Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?

  5. AUD/USD Range Endures With Clearer Cues From Candlesticks Desired
    Forex News

    AUD/USD Range Endures With Clearer Cues From Candlesticks Desired

Trading Center