FXstreet.com (Barcelona) - The Dollar has been rallying across the board during last weeks, reaching multi -month highs against Euro Yen and Pound, but the Dollar seems to be losing strength, and according to David Rodriguez, technical analyst a Euro upward reversal should not be discarded.

Investors have started to scale back their USD short exposure, and have begun selling EUR/USD, which, according to Rodriguez could be de signal of a potential turn: The most recent shift shows that crowds have scaled back their USD-short exposure and have actually begun selling the EURUSD. In our experience, such capitulation is often the first sign of a potential turn in price, and traders should be on the lookout for a EURUSD bounce.