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
    1.3326+0.0001+0.01%
    USDSGD=X
    1.4473-0.0002-0.02%
    EURSGD=X
    2.0216-0.0012-0.06%
    GBPSGD=X
    89.2629+0.0433+0.05%
    SGDJPY=X
    5.8159-0.0003-0.01%
    SGDHKD=X
    2.6820-0.0001-0.01%
    SGDMYR=X
    9,718.0664-0.5098-0.01%
    SGDIDR=X
    4.6489-0.0002-0.01%
    SGDCNY=X
    1.0425+0.0004+0.04%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,176.00-14.50-1.21%
    GCQ15.CMX
    15.64-0.11-0.72%
    SIK15.CMX
    69.95-0.68-0.96%
    ^XAU
    2.75+0.04+1.56%
    HGK15.CMX
    57.15-0.32-0.55%
    CLM15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.32-0.03
    ^FVX
    1.92-0.03
    ^TNX
    2.62-0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.225-0.005-2.17%
    5GB.SI
    0.84-0.02-2.33%
    N21.SI
    0.2950.0000.00%
    5WA.SI
    0.093-0.014-13.08%
    A6F.SI
    4.37+0.02+0.46%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.245+0.025+11.36%
    MR8.SI
    0.198+0.018+10.00%
    40N.SI
    0.505+0.040+8.60%
    L5I.SI
    0.635+0.050+8.55%
    MS7.SI
    0.285+0.020+7.55%
    5TP.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.093-0.014-13.08%
    A6F.SI
    0.23-0.02-9.80%
    5WR.SI
    0.23-0.02-9.80%
    B1N.SI
    0.117-0.012-9.30%
    V69.SI
    0.235-0.020-7.84%
    41A.SI