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Contrarian Traders Target EUR/USD at 1.50
Friday, 23 November 2007 11:43:49 GMT  |  Antonio Sousa, Quantitative Strategies Analyst
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The ratio of long to short positions in the EURUSD stands at -1.96 as nearly 66% of traders are short, according to our execution desk data on the positioning of more than 21.000 retail traders. In detail, long positions are 3.5% higher than yesterday and 7.1% weaker since last week. Short positions are 3.1% lower than yesterday and 11.5% stronger since last week. Open interest is 1% weaker than yesterday and 4.2% below its monthly average. In the past, when retail was short and selling more, the EURUSD has rallied in the following days. The SSI gives us a STRONG SIGNAL TO BUY EURUSD and we think the pair will test and break trough 1.50 in the week ahead.

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Historical Charts of Speculative Positioning

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For information on an FXCM Managed Fund that takes advantage of the SSI, please review our Sentiment Fund at:  http://www.FXCMManagedFunds.com or call +1 646-432-2968

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