EURUSD – A strong US Dollar rally against the Euro and other key currencies has been met with similarly aggressive crowd buying, giving contrarian signal to buy into USD strength (sell EURUSD). The ratio of long to short positions in the EURUSD stands at 1.50 as nearly 60% of traders are long. Yesterday, the ratio was at 1.87 as 65% of open positions were long. In detail, long positions are 8.2% lower than yesterday but an impressive 28.2% stronger since last week. Short positions are 14.8% higher than yesterday and 13.9% weaker since last week. Open interest is 0.2% weaker than yesterday and 11.6% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD losses. Indeed, three of our six automated trading strategies have sold the fast-falling pair.
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