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
    1.3873-0.0042-0.30%
    USDSGD=X
    1.5673-0.0023-0.15%
    EURSGD=X
    2.0182-0.0044-0.22%
    GBPSGD=X
    81.2812-0.2574-0.32%
    SGDJPY=X
    5.6144+0.0137+0.24%
    SGDHKD=X
    2.9564-0.0082-0.28%
    SGDMYR=X
    9,655.1338-6.7549-0.07%
    SGDIDR=X
    4.7363+0.0134+0.28%
    SGDCNY=X
    0.9866-0.0009-0.09%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,207.10+12.50+1.05%
    GCJ16.CMX
    15.38+0.09+0.61%
    SIH16.CMX
    55.40+1.06+1.94%
    ^XAU
    2.00-0.02-1.18%
    HGH16.CMX
    27.02-0.43-1.57%
    CLH16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.15-0.01
    ^FVX
    1.70-0.02
    ^TNX
    2.53-0.03
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    3.62-0.04-1.09%
    Z74.SI
    0.320.00-1.54%
    N21.SI
    0.67-0.01-2.19%
    G13.SI
    1.615-0.015-0.92%
    MC0.SI
    0.3350.0000.00%
    5SO.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    62.06+7.42+13.58%
    NF6.SI
    0.23+0.02+9.52%
    5TP.SI
    34.85+3.03+9.52%
    NF4.SI
    45.85+3.25+7.63%
    LF2.SI
    10.13+0.66+6.97%
    I19.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.28-0.05-15.15%
    R07.SI
    0.23-0.03-13.21%
    F86.SI
    0.24-0.02-7.69%
    AXH.SI
    72.61-5.43-6.96%
    P2Q.SI
    0.134-0.010-6.94%
    T13.SI