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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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2585+0.0004+0.03%
    USDSGD=X
    1.7407+0.0005+0.03%
    EURSGD=X
    2.1150+0.0012+0.06%
    GBPSGD=X
    81.3194+0.0273+0.03%
    SGDJPY=X
    6.1606-0.002-0.03%
    SGDHKD=X
    2.6022+0.0038+0.15%
    SGDMYR=X
    9,228.8760-27.1504-0.29%
    SGDIDR=X
    4.9697+0.0028+0.06%
    SGDCNY=X
    1.1672+0.002+0.17%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,293.30+2.70+0.21%
    GCM14.CMX
    19.59-0.10-0.50%
    SIK14.CMX
    91.62-1.25-1.35%
    ^XAU
    3.120.00+0.10%
    HGK14.CMX
    101.92-0.02-0.02%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.74+0.03
    ^FVX
    2.690.00
    ^TNX
    3.460.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    2.22+0.010+0.45%
    JS8.SI
    1.175+0.025+2.17%
    U6C.SI
    0.122-0.001-0.81%
    B22.SI
    1.34-0.015-1.11%
    G13.SI
    1.21-0.005-0.41%
    S53.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.21+0.020+10.53%
    F86.SI
    0.166+0.014+9.21%
    5HH.SI
    0.73+0.060+8.96%
    5DP.SI
    1.315+0.084+6.82%
    O9A.SI
    0.116+0.010+9.43%
    O2I.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.110.0000.00%
    CL7.SI
    0.142-0.012-7.79%
    5GD.SI
    0.29-0.010-3.33%
    O08.SI
    0.105+0.004+3.96%
    E9A.SI
    0.151-0.009-5.63%
    A03.SI