Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Trade Implications – EURUSD: It’s always tempting to join the crowd in selling the Euro at major extremes, but the data itself shows the dangers of trying to time a reversal: retail traders have been net-short Euro since it crossed above $1.29 in July.
Instead we’ll wait for concrete signs of a turn in price and sentiment. For the SSI that means watching the Momentum2 trading system, which is designed to catch big turns in trend. From a price perspective, our Senior Markets Strategist favors the topside as long as EURUSD remains above $1.3475.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at https://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX