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
    1.3521+0.01+0.74%
    USDSGD=X
    1.5560+0.0089+0.58%
    EURSGD=X
    1.9665-0.0018-0.09%
    GBPSGD=X
    78.7376-0.5831-0.74%
    SGDJPY=X
    5.7412-0.0403-0.70%
    SGDHKD=X
    2.9510+0.0315+1.08%
    SGDMYR=X
    9,812.1514+38.6279+0.40%
    SGDIDR=X
    4.8014-0.0222-0.46%
    SGDCNY=X
    1.0129-0.0154-1.50%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,288.60-7.20-0.56%
    GCM16.CMX
    17.47-0.21-1.20%
    SIN16.CMX
    87.23-3.50-3.86%
    ^XAU
    2.21-0.05-2.27%
    HGN16.CMX
    43.71-1.07-2.39%
    CLM16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.26-0.06
    ^FVX
    1.80-0.07
    ^TNX
    2.66-0.06
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.106-0.001-0.93%
    5I0.SI
    0.43-0.03-6.52%
    N21.SI
    1.295+0.010+0.78%
    N03.SI
    0.099-0.003-2.94%
    5DN.SI
    0.133+0.002+1.53%
    40E.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.78+0.08+12.23%
    5ER.SI
    0.23+0.03+12.20%
    5UZ.SI
    0.187+0.017+10.00%
    A55.SI
    0.33+0.03+10.00%
    BOU.SI
    0.58+0.04+8.41%
    BEI.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.166-0.054-24.55%
    O08.SI
    0.40-0.10-20.00%
    AWC.SI
    0.225-0.045-16.67%
    S46.SI
    0.175-0.024-12.06%
    D79.SI
    0.25-0.03-10.71%
    5PC.SI