EURUSD-Euro Forecast Against US Dollar May Shift on Forex Positioning

Forex Positioning in the EURUSD

EURUSD – Forex positioning in the Euro/US Dollar has been especially volatile as of late, but shifts in trader sentiment have been useful to forecast changes in short-term direction for the EUR/USD pair. Indeed, the forex trading “crowd” flipped net-short the EUR/USD just as it hit rock bottom through recent trade—a timely signal to buy the EUR/USD. Our SSI Ratio has since moved to neutral territory, and a 11.2 percent overnight gain in long positions suggests that the EUR/USD trend may shift to the downside. Our SSI-based currency trading signals previously bought EUR/USD aggressively through the 1.2600 mark, but a further shift in positioning would likely make those same strategies go short—signaling further EUR/USD losses.