EUR/USD Ratio: 1.21 Trading Signal: Bearish
EURUSD – Forex trading speculators continue to buy the Euro/US Dollar currency pair, but surprisingly balanced positioning suggests that our contrarian Speculative Sentiment Indicator may forecast EURUSD gains through the near term. Typically the FXCM SSI works best when forex speculator sentiment remains extreme, with SSI ratios above 2.0 or below -2.0. Yet we see that indecisive currency trading markets maintain little bias on the EURUSD despite its extensive downward moves. We will wait until there is a more decisive turn in forex positioning until we give a clearer forecast for the Euro/US dollar pair, but a modestly positive SSI Ratio suggests that short-term risks remain to the downside for the EURUSD losses. Tell us what you believe in our forex forum EURUSD thread.