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
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
New to FX markets? Learn more in our video trading guide.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
