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 MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.225-0.015-6.25%
    N21.SI
    0.177+0.004+2.31%
    40F.SI
    0.170.00+1.80%
    5DM.SI
    0.945-0.015-1.56%
    Y92.SI
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  • % Gainers
    % Gainers
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    0.127+0.024+23.30%
    A7S.SI
    1.16+0.21+22.11%
    C76.SI
    0.125+0.018+16.82%
    L02.SI
    0.63+0.06+10.53%
    AWG.SI
    0.285+0.020+7.55%
    T4B.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    1.10-0.12-9.84%
    ATL.SI
    0.24-0.02-7.69%
    I06.SI
    0.225-0.015-6.25%
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    BLL.SI
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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4176+0.0014+0.10%
    USDSGD=X
    1.5025-0.0087-0.58%
    EURSGD=X
    1.7553-0.0131-0.74%
    GBPSGD=X
    79.3170-0.614-0.77%
    SGDJPY=X
    5.4690-0.0071-0.13%
    SGDHKD=X
    3.1400-0.0032-0.10%
    SGDMYR=X
    9,433.8662+1.0723+0.01%
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    SGDCNY=X
    1.0872-0.0025-0.23%
    AUDSGD=X
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    SIH17.CMX
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    CLJ17.NYM
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