Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Trade Implications – EURUSD: Our proprietary retail FX positioning data shows traders are their most long the Euro versus the US Dollar on record, and when everyone buys we typically look to sell. This factor in itself keeps us looking for further EUR losses.
The important caveat is that these sentiment extremes can often coincide with significant turning points. There’s no way to know when/if we’re at THE low, however, and until we see a significant shift in sentiment we’ll keep in favor of continued EURUSD declines. Key support comes in at November lows of $1.33, and a breakdown leaves little in the way of a move towards September’s trough near $1.31.
See next currency section: GBPUSD – British Pound Breakdown Confirmed, Look for Losses
— 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 http://www.twitter.com/DRodriguezFX