Euro Likely to Rally Further Against USD
EURUSD – A shift in retail forex crowd sentiment suggests the euro could continue its recent rally against the downtrodden US Dollar. Our proprietary Speculative Sentiment Index shows that 56% of traders are short the EURUSD (SSI ratio of -1.25). This is effectively unchanged, but the number of traders holding EURUSD long positions has fallen 15.3% since last week while short interest remained roughly unchanged.
We use the SSI as a contrarian indicator, and the recent crowd shift towards EURUSD selling gives signal that the pair may continue to rally through upcoming price action.
To get on the mailing list for the SSI and other reports from author David Rodriguez, e-mail subject line “Distribution list” to
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.