We Like Joining the Crowd and Buying Euro Here

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com - We Like Joining the Crowd and Buying Euro Here

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

EURUSD – Forex trading crowds have bought aggressively into Euro weakness as it nears critical support versus the US Dollar, and the sharp shift warns of volatility ahead.

Trade Implications – EURUSD: We most often go against the crowd; if everyone’s recently bought we like to sell and vice versa. Yet the issue is that extremely low forex volatility gives little reason to expect a major Euro breakdown here. And in fact, the retail trading crowd is often on the right side of major reversals in low-volatility environments.

We’re cautiously bullish the EURUSD until we see a bigger shift in market conditions. A break below $1.35 would obviously negate this bias and be accompanied by a jump in broader market volatility.

See next currency section: GBPUSD - British Pound Rally not Done Just Yet

Related Forex Analysis
  1. EUR/USD risk returning to the upside - FXStreet
    Forex News

    EUR/USD risk returning to the upside - FXStreet

  2. EUR/USD 1.2600 Put in Place as Key Pivot
    Forex News

    EUR/USD 1.2600 Put in Place as Key Pivot

  3. EUR/USD back to 1.2470
    Forex News

    EUR/USD back to 1.2470

  4. Major’s in a technical snapshot - RBS
    Forex News

    Major’s in a technical snapshot - RBS

  5. EUR/USD rallies as USD weakens broadly
    Forex News

    EUR/USD rallies as USD weakens broadly

Trading Center