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Euro Forecast Neutral on Unclear Forex Sentiment
Thursday, 26 February 2009 13:25:48 GMT  |  David Rodriguez, Quantitative Analyst
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EUR/USD ratio: 1.05
Trading Forecast: Bearish

Euro US Dollar

EURUSD – Forex trading sentiment has been extremely choppy in the EUR/USD, as directionless price action does not often produce sentiment extremes. Indeed, the ratio of long to short positions in the EUR/USD stands at a relatively neutral 1.06 on 51 percent of traders being long. Yesterday the ratio stood at -1.12 as 53 percent of open positions were short. Long positions are 27.5% higher than yesterday and 48.2% stronger since last week. Short positions are 7.9% higher than yesterday and 39.9% stronger since last week. The sharp overnight jump in EUR/USD long positions gives us a marginally bearish contrarian bias, but choppy price action lends very little conviction to our bias. Our sentiment-based forex trading signals are accordingly weakly short the EUR/USD.  

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