FOREX ANALYSIS: Crowds Sell Euro, We Favor Gains

ssi_eur-usd_body_Picture_6.png, FOREX ANALYSIS: Crowds Sell Euro, We Favor Gains

Retail forex trading crowds have sold aggressively into Euro strength against the US Dollar (ticker: USDOLLAR), and indeed short interest has hit fresh year-to-date peaks. We most often take a contrarian view to crowd sentiment; if most traders are short, we prefer to go long. And indeed we see risks that the EURUSD continues to trade above the psychologically significant $1.30 mark.

Two of our SSI-based trading strategies have most recently gone long EURUSD from 1.2944 and 1.2984, but it remains important to watch how the Euro reacts to key resistance near the $1.3130 figure.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.25+0.02+8.70%
    N21.SI
    0.400.000.00%
    E5H.SI
    0.960.000.00%
    Y92.SI
    0.355+0.015+4.41%
    5ME.SI
    0.105-0.001-0.94%
    5WA.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.43+0.09+26.47%
    AYB.SI
    0.142+0.024+20.34%
    1C0.SI
    0.305+0.040+15.09%
    1C5.SI
    0.325+0.035+12.07%
    K14.SI
    0.179+0.018+11.18%
    5TI.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.25-0.09-26.47%
    PA3.SI
    0.18-0.06-25.00%
    AZR.SI
    0.10-0.02-20.00%
    L02.SI
    0.25-0.05-16.67%
    BTX.SI
    0.52-0.10-16.13%
    AZA.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4185-0.0021-0.15%
    USDSGD=X
    1.4903-0.0061-0.41%
    EURSGD=X
    1.7725+0.0005+0.03%
    GBPSGD=X
    79.8640-0.112-0.14%
    SGDJPY=X
    5.4691+0.0079+0.14%
    SGDHKD=X
    3.1424+0.0051+0.16%
    SGDMYR=X
    9,450.5391+6.124+0.06%
    SGDIDR=X
    4.8464+0.0033+0.07%
    SGDCNY=X
    1.0930+0.003+0.28%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,235.20-3.70-0.30%
    GCJ17.CMX
    17.94-0.06-0.31%
    SIH17.CMX
    91.73-0.83-0.89%
    ^XAU
    2.72-0.02-0.80%
    HGH17.CMX
    54.27-0.06-0.11%
    CLJ17.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.92+0.01
    ^FVX
    2.430.00
    ^TNX
    3.04+0.01
    ^TYX