EURUSD – Retail forex trading crowds remain heavily short the Euro against the US Dollar (ticker: USDOLLAR), and a contrarian view of crowd sentiment has left us consistently in favor of further gains.
Trade Implications – EURUSD: Our sentiment-based trading strategies have continued to buy the Euro against the US Dollar and Japanese Yen. An important jump in forex volatility leaves us in favor of further Euro gains, and indeed we’ll continue to favor EURUSD and EURJPY longs until further notice.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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