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 Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4062-0.0056-0.39%
    USDSGD=X
    1.5871+0.0046+0.29%
    EURSGD=X
    2.1657-0.0007-0.03%
    GBPSGD=X
    85.6743-0.2015-0.23%
    SGDJPY=X
    5.5113+0.0217+0.40%
    SGDHKD=X
    2.9815+0.0157+0.53%
    SGDMYR=X
    10,011.2012+63.1934+0.64%
    SGDIDR=X
    4.5276+0.0112+0.25%
    SGDCNY=X
    1.0018-0.002-0.19%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,140.90+8.40+0.74%
    GCZ15.CMX
    14.65+0.06+0.44%
    SIZ15.CMX
    48.43-0.40-0.81%
    ^XAU
    2.33-0.01-0.21%
    HGZ15.CMX
    47.72-1.48-3.01%
    CLV15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.54+0.02
    ^FVX
    2.20+0.01
    ^TNX
    2.93+0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.135+0.005+3.85%
    5DN.SI
    0.310.000.00%
    5WA.SI
    0.535-0.010-1.83%
    N21.SI
    0.73+0.01+1.39%
    5ME.SI
    0.76-0.01-1.30%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.26+0.02+10.64%
    L38.SI
    0.250.000.00%
    UQ4.SI
    0.22+0.02+10.00%
    AZR.SI
    0.22+0.02+10.00%
    GG7.SI
    0.280.00+1.82%
    AWO.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.09-0.02-18.18%
    40R.SI
    0.205-0.045-18.00%
    5NF.SI
    0.147-0.008-5.16%
    UV1.SI
    0.40-0.04-9.09%
    MN5.SI
    0.31-0.02-6.06%
    P9D.SI