Daily FX Retail Trader Contrarian Analysis

Retail Traders as a herd are wrong…most of the time (sorry guys its true).

This daily report is designed to help traders find opportunities to trade against this group. The premise is very simple we are looking for 66% of retail traders to be trading either long or short a currency pair, we then look for opportunities to fade (trade against) this group. For example if 72.99% of traders are long the USD/CHF we look for opportunities to short that pair.

The pairs that we feel offer the highest opportunity for success are described in the Shortand Long Zones.

What’s New Today? The EUR/CHF slipped gently out of the Short Zone today. I would urge caution with the USDJPY (even though the selling has been sustained) due to further intervention speculation g

Provided by Pivotfarm - The Home of Pivot Point Trading

Comments

[newstreet]

Losers average losers.

[anony]

What about the USD/MXN cross?

I'm down about .40 cents and believe that this sustained decline can't last forever. Thinking about putting up more margin and/or Doubling down.

Any thoughts about it?

[RoRoTrader]

Try this from John Taylor from 08/26/10;

http://www.zerohedge.com/article/after-calling-top-euro-john-taylor-sees...