Euro Likely to Hit Fresh Lows versus Resurgent Dollar
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EURUSD – FX trading crowds remain heavily long the Euro versus the US Dollar, and a contrarian view of crowd sentiment leaves us in favor of further EUR/USD declines.
Trade Implications – EURUSD: Total retail long interest in the EURUSD remains near record levels, while net positions are matching extremes last seen in 2012 as the Euro traded near the $1.20 mark. Until we see material signs of sentiment reversal we see little choice but to favor continued weakness. Yet it bears mention that professional trader positioning is likewise near its most extreme since 2012; the pace of losses is likely to slow.
See next currency section: GBPUSD - British Pound Remains at Risk for Key Reasons
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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