Euro Forecast May Turn Bearish
EURUSD – Forex trading crowds remain fairly net-short the euro against the US Dollar, but a sharp drop in short interest suggests that trends are slowly but surely turning. The number of traders short now stands at its lowest levels since mid-July when the Euro traded near 1.4100. And though sentiment would need to turn further for us to become bearish, our SSI-based bias is far less bullish than it has been.
In full detail, the ratio of long to short positions in the EURUSD stands at -1.31 as nearly 57% of traders are short. Long positions are 12.7% lower than yesterday and 2.1% weaker since last week. Short positions are 10.7% lower than yesterday and 25.4% weaker since last week. The noteworthy drop in short interest warns that traders may soon turn net-long the EURUSD pair, giving contrarian signal for further declines.
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