Euro May have Set Important Top vs USD
EURUSD – Trading crowds have once again begun selling into Euro advances and buying into US Dollar declines, clouding short-term outlook in the extraordinarily volatile EURUSD pair. Last week we claimed that a strong build in EURUSD-long positions warned that trends could soon shift. Yet crowds have more recently remained strongly net-short and left the Euro uptrend intact. Elevated volatility expectations nonetheless warn that direction could change in an instant and caution is advised.
The ratio of long to short positions in the EURUSD stands at -2.11 as nearly 68% of traders are short. Yesterday, the ratio was at -2.35 as 70% of open positions were short. In detail, long positions are 2.7% higher than yesterday and 13.8% weaker since last week. Short positions are 7.7% lower than yesterday and 1.8% weaker since last week. Open interest is 4.6% weaker than yesterday and 10.2% below its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.
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