Euro Could Continue its Rally
EURUSD – The euro’s bounce from recent lows was met with fairly aggressive retail trading crowd selling, giving contrarian signal to watch for further strength. Indeed, traders remain fairly net-short through time of writing and give continued indication that the pair may rally further.
The ratio of long to short positions in the EURUSD stands at -1.33 as nearly 57% of traders are short. This is a slight moderation from yesterday when 60% of traders were short. In detail, long positions are 11.8% higher than yesterday and 5.7% stronger since last week. Short positions are 1.0% higher than yesterday and 8.2% stronger since last week. The fact that traders have mostly been buying from yesterday slightly moderates our contrarian bullish bias, but the net-short SSI ratio gives contrarian signal that the EURUSD may continue to strengthen.
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