Euro Nears Major Turnaround on Sentiment Shift
EURUSD – Currency trading crowds have remained short the Euro against the US Dollar since the pair traded near the 1.3000 mark, providing strong contrarian signal to buy into EURUSD rallies. Yet a more recent shift has softened our bullish bias as those same crowds build long positions into recent declines. The ratio of long to short positions in the EURUSD stands at -1.64 as nearly 62% of traders are short. Yesterday, the ratio was at -1.99 as 67% of open positions were short. In detail, long positions are 12.2% higher than yesterday and 20.5% stronger since last week. Short positions are 7.0% lower than yesterday and 8.3% stronger since last week. Open interest is 0.6% weaker than yesterday and 9.9% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains. Yet the recent build in long positions warns that direction may slowly be turning in the US Dollar’s favor.
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