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EURUSD – The Euro continues to trade to fresh lows versus the US Dollar, and heavily one-sided crowd positions suggest it could depreciate further before a meaningful recovery.
Trade Implications – EURUSD: Our proprietary data shows that there are nearly two open positions short the Euro versus the US Dollar for every one that is long. We most often go against the herd; the fact that the strong majority of traders are long leaves us bearish the EURUSD.
There’s risk that the EURUSD may set an important low next week, but we will continue to call for Euro declines until we see a material shift in crowd sentiment.
See next currency section: GBPUSD - British Pound Targets Fresh Lows versus the US Dollar