We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Euro Forecast May Turn Bearish

Euro Forecast May Turn Bearish

2011-08-04 16:02:00
David Rodriguez, Head of Product
Share:
ssi_eur-usd_body_Picture_1.png, Euro Forecast May Turn Bearish

EURUSDForex 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.

To get on the mailing list for the SSI and other reports from author David Rodriguez, e-mail subject line “Distribution list” to

drodriguez@dailyfx.com

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.

DISCLOSURES

News & Analysis at your fingertips.