Investors Shun US on Fiscal Cliff, Euro could revisit September Highs
Jim O'Neill, Chairman of Goldman Sachs Asset Management made the following comment on CNBC's Squawk Box this morning.
"More and more longer-term investors are being influenced by [the fiscal cliff impasse] and are starting to think Europe has dealt with some of its long-term issues, even though the economies are weak. I detect the first signs of people shifting more towards Europe from the U.S."
The latest Speculative Sentiment Index (SSI) readings from DailyFX PLUS support this bullish view on the Euro. The ratio of long to short positions in the EURUSD stands at -2.39 as approximately 29% of traders are long.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the EURUSD may continue higher. Current SSI is lower than yesterday and lower from last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
Tyler Yell, DailyFX Trading Instructor shared the chart above which shows the Ichimoku Cloud. The EUR/USD price is currently trading above the Kumo (cloud) which is a buy signal for that indicator.
Jim O'Neill, Chairman of Goldman Sachs Asset Management made the following comment on CNBC's Squawk Box this morning.
"More and more longer-term investors are being influenced by [the fiscal cliff impasse] and are starting to think Europe has dealt with some of its long-term issues, even though the economies are weak. I detect the first signs of people shifting more towards Europe from the U.S."
The latest Speculative Sentiment Index (SSI) readings from DailyFX PLUS support this bullish view on the Euro. The ratio of long to short positions in the EURUSD stands at -2.39 as approximately 29% of traders are long.
https://media.dailyfx.com/illustrati..._Picture_2.png
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the EURUSD may continue higher. Current SSI is lower than yesterday and lower from last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
http://img856.imageshack.us/img856/7...ichi200sma.png
Tyler Yell, DailyFX Trading Instructor shared the chart above which shows the Ichimoku Cloud. The EUR/USD price is currently trading above the Kumo (cloud) which is a buy signal for that indicator.