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Euro Forecast to Decline Following ECB Rate Decision
Thursday, 05 March 2009 13:43:37 GMT  |  David Rodriguez, Quantitative Analyst
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EUR/USD ratio: 1.43
Trading Forecast: Bearish

Euro US Dollar

EURUSD – Forex trading crowds continue to aggressively buy the Euro against the US Dollar, and our contrarian analysis forecasts that the EUR/USD will decline further. The ratio of long to short positions in the EURUSD stands at 1.43 as nearly 59% of traders are long. Yesterday, the ratio was at 1.29 as 56% of open positions were long. In detail, long positions are 19.0% higher than yesterday and 45.9% stronger since last week. Short positions are 7.4% higher than yesterday and 44.3% stronger since last week. Open interest is 13.9% stronger than yesterday and 54.2% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD losses. Our sentiment-based forex trading signals are accordingly short the EUR/USD.  

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