Euro Forecast Modestly Bullish Against US Dollar
EURUSD – Incredible volatility in forex markets has led to similarly volatile sentiment readings, making our Speculative Sentiment Index effectively neutral the Euro against the US Dollar. The ratio of long to short positions in the EURUSD stands at -1.06 as nearly 52% of traders are short. Yesterday, the ratio was at -1.28 as 56% of open positions were short. In detail, long positions are 2.3% higher than yesterday and 16.1% weaker since last week. Short positions are 14.9% lower than yesterday and 39.9% stronger since last week. Open interest is 7.4% weaker than yesterday and 5.6% below its monthly average. The sharp shift towards short positions gives us a modestly bullish bias, and two of our SSI-based trading strategies are long. Yet the near-neutral SSI ratio limits our conviction in said calls.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.