Extreme trader sentiment points to possible EURAUD downtrendThe Trend Follower Strategy has just sold EURAUD at 1.56179. The system recommends entering this trade at any price between 1.56009 and 1.56349. The signal was issued because our Speculative Sentiment Index is extremely negative, with a value of 1.50163. This suggests that the EURAUD could be trending downwards.The 14-period Average True Range on a daily chart is 0.0068, so the stop loss has been set at 1.56859. This stop loss order is a trailing stop that will move down as the market moves down. There is no profit target for this strategy. We expect to be closed by the stop loss.Trend Follower is a trend trading strategy that aims to buy and hold rising currency pairs and to sell short and hold falling currency pairs. The strategy looks to buy when the Speculative Sentiment Index is below -1.5, and looks to short when it is above +1.5.
Signal ID: 75040
Time Issued: Wednesday, 17 February 2021 01:00:16 GMT
Status: open
Entry: 1.56009 - 1.56349
Limit: N/A
Stop Loss: 1.56859
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.
Past Performance is not an indicator of future results.
