A Contrarian Trade Opportunity in the Euro

Lets face it, nobody is bullish on the euro, nobody! Even ECB President Mario Draghi probably has a secret short position in the EUR/USD in order to hedge his euro exposure from his salary at the ECB. If the following sentiment chart could fall below 0 it would probably be at minus 50 by now:

 

Euro_Sentiment

Meanwhile, this morning’s move down to the low 1.07s has moved the EUR/USD pair into an area of historical support/resistance dating back to the late 90s-early 2000s:

 

EUR_USD_3.10.2015

On multiple time-frames EUR/USD has never been as oversold as it is currently. Moreover, EUR/USD is also down 9 months in a row! (another record if it sticks). From my perch if there’s going to be a contrarian counter-trend long opportunity in EUR/USD before it reaches parity it’s probably going to come about fairly soon or not come about at all…