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Euro Forecast to Rally Further against US Dollar
Thursday, 21 May 2009 14:15:13 GMT  |  David Rodriguez, Quantitative Strategist
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EUR/USD ratio: -1.67
Trading Forecast: Bullish

2009-05-21_ssi_eur

EURUSD – Our forex trading signals remains aggressively long the Euro against the US Dollar, and extreme forex sentiment suggests the rally is not yet over. The ratio of long to short positions in the EURUSD stands at -1.67 as nearly 63% of traders are short. Yesterday, the ratio was at -1.73 as 63% of open positions were short. In detail, long positions are 5.5% higher than yesterday and 16.6% weaker since last week. Short positions are 1.6% higher than yesterday and 14.1% weaker since last week. Long positions are beginning to gain traction, but shorts continue to outnumber longs by a healthy margin. Absent a stronger shift in positioning, the SSI projects further EUR/USD gains.

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