Forex Analysis: Trading Systems buy Euro versus US Dollar

ssi_eur-usd_body_Picture_5.png, Forex Analysis: Trading Systems buy Euro versus US Dollar

EURUSD - Retail forex trading crowds remain heavily long the US Dollar (ticker: USDOLLAR) versus the Euro and other major counterparts, and a contrarian view of crowd sentiment favors continued EURUSD gains. Indeed, the FXCM Speculative Sentiment Index for the Euro stands at -2.3 as there are 2.3 traders short for every long.

Trade Implications – EURUSD: One of our sentiment-based trading strategies has most recently bought the Euro from $1.3323 with a trailing stop at the 24-hour low at approximately $1.3270. A noteworthy jump in FX volatility suggests the trade has a reasonable chance of success. , but it will be important to watch whether the Euro can clear recent reaction highs at the psychologically significant $1.34 mark.

--- 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
    1.3586+0.0008+0.06%
    USDSGD=X
    1.5606+0.001+0.06%
    EURSGD=X
    1.9702+0.0016+0.08%
    GBPSGD=X
    78.8790+0.0785+0.10%
    SGDJPY=X
    5.7123-0.0048-0.08%
    SGDHKD=X
    2.9541-0.0104-0.35%
    SGDMYR=X
    9,855.7363+3.3672+0.03%
    SGDIDR=X
    4.7804-0.0035-0.07%
    SGDCNY=X
    1.0142+0.0015+0.15%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,282.40+8.00+0.63%
    GCM16.CMX
    17.45+0.15+0.86%
    SIN16.CMX
    83.27-3.96-4.54%
    ^XAU
    2.190.00+0.05%
    HGN16.CMX
    44.55+0.77+1.76%
    CLM16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.24-0.02
    ^FVX
    1.78-0.02
    ^TNX
    2.64-0.02
    ^TYX

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