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Euro Forecast Bullish against US Dollar Following Fed
Thursday, 19 March 2009 13:15:07 GMT  |  David Rodriguez, Quantitative Analyst
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EUR/USD ratio: -1.09
Trading Forecast: Bullish

Euro US Dollar

EURUSD – Forex crowds have aggressively sold into Euro/US Dollar rallies, and our contrarian indicator forecasts that it may continue to gain. The largest-ever percentage gain in the EUR/USD has invited aggressive selling. Yet it is worthwhile to note that many traders have given up their short positions—hinting at signs of reversal. The ratio of long to short positions in the EURUSD stands at -1.10 as nearly 52% of traders are short. Yesterday, the ratio was at -1.12 as 53% of open positions were short. In detail, long positions are 9.6% lower than yesterday and 1.2% weaker since last week. Short positions are 10.8% lower than yesterday and 26.1% stronger since last week. Open interest is 10.2% weaker than yesterday and 24.3% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains. Our sentiment-based forex trading signals are accordingly long the EUR/USD.  

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