FOREX ALERTS >>
DailyFX Plus Login

eur ssi

Article

Euro Sentiment Forecasts Turn Following ECB Rate Decision
Thursday, 05 February 2009 13:58:12 GMT  |  David Rodriguez, Quantitative Analyst and Antonio Sousa, Chief Strategist
Delicious
Facebook

EUR/USD ratio: 1.17
Trading Forecast: Bearish

020509_ssi_2

EURUSD – The European Central Bank interest rate decision has led many traders to sell the Euro/US Dollar aggressively through the day’s trade, but a contrarian view of aggregate positioning suggests that the EUR/USD may fall further. The ratio of long to short positions in the EURUSD stands at 1.18 as nearly 54% of traders are long. A 26.4 percent overnight jump in short positions tells us that forex trading crowds are becoming less bullish, but we nonetheless note that long positions are 26.6 percent higher than last week. Our Speculative Sentiment Index analysis is contrarian in nature, and we believe that the net-long Euro/US Dollar bias signals further losses are likely. Our sentiment-based forex trading signals are accordingly short the Euro/US dollar through current price action. 

More Articles

Feedback Form