FOREX ANALYSIS: Trading Systems Sell Euro on Major Sentiment Shift

ssi_eur-usd_body_Picture_7.png, FOREX ANALYSIS: Trading Systems Sell Euro on Major Sentiment Shift

A noteworthy shift in retail FX trading sentiment warns that the Euro may have set a short-term top versus the US Dollar (ticker: USDOLLAR), and one of our sentiment-based trading strategies has accordingly taken a short position from $1.3193.

Traders have remained net-short the EURUSD since the pair traded above $1.27 through mid-November, and normally we would treat this as a contrarian signal in favor of further strength. Yet the number of traders short has fallen by 14 percent while longs are up a noteworthy 38 percent since last week.

Timing reversals is risky, but we see early evidence of an important EURUSD turn lower.

--- 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
    1.3475-0.0012-0.09%
    USDSGD=X
    1.4960+0.0013+0.08%
    EURSGD=X
    2.0992-0.0058-0.27%
    GBPSGD=X
    91.0434-0.2069-0.23%
    SGDJPY=X
    5.7539+0.0059+0.10%
    SGDHKD=X
    2.8093+0.0199+0.71%
    SGDMYR=X
    9,915.1367+64.1494+0.65%
    SGDIDR=X
    4.6079+0.0075+0.16%
    SGDCNY=X
    1.0128-0.0164-1.60%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,167.70+4.20+0.36%
    GCQ15.CMX
    15.65+0.09+0.60%
    SIU15.CMX
    62.65+1.28+2.08%
    ^XAU
    2.62-0.01-0.55%
    HGU15.CMX
    56.31-0.62-1.09%
    CLQ15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.65-0.06
    ^FVX
    2.39-0.02
    ^TNX
    3.190.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.156-0.009-5.45%
    5DN.SI
    0.300.000.00%
    5WA.SI
    0.189+0.001+0.53%
    5MC.SI
    0.865+0.015+1.76%
    N03.SI
    0.4150.0000.00%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.55+0.09+20.88%
    BAJ.SI
    0.515+0.075+17.05%
    AWV.SI
    0.215+0.031+16.85%
    AZR.SI
    0.22+0.03+15.79%
    AZT.SI
    0.54+0.06+12.50%
    AWZ.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.06-0.06-50.00%
    5TW.SI
    0.09-0.03-25.00%
    40R.SI
    0.31-0.09-22.50%
    AVW.SI
    0.10-0.02-15.25%
    5I1.SI
    0.33-0.05-13.16%
    5UL.SI