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Euro Outlook Remains Bearish Against US Dollar
Thursday, 23 April 2009 14:09:10 GMT  |  David Rodriguez, Quantitative Strategist
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EUR/USD ratio: 1.10
Trading Forecast: Bearish

04-23-09_ssi_2

EURUSD – Our forex trading signals sold the Euro against the US Dollar through recent declines, but a more recent bounce leaves our algorithmic trading systems flat the EUR/USD. The ratio of long to short positions in the EURUSD stands at 1.10 as nearly 52% of traders are long. Yesterday, the ratio was at 1.12 as 53% of open positions were long. In detail, long positions are 0.1% lower than yesterday and 9.1% stronger since last week. Short positions are 1.9% higher than yesterday and 19.3% stronger since last week. Open interest is 0.8% stronger than yesterday and 15.0% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD losses. Yet the strength of the bearish contrarian signal has clearly faded on the recent EUR/USD bounce, and we have little conviction in our calls for Euro declines through the near term.

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