Forex Traders Continue to Bet on Euro Losses
EURUSD – Considering traders remain net long Euro against the U.S. Dollar, despite recent weakness in the pair, the EUR/USD could fall further. Although the pair has shaved off nearly 1000-pips in three weeks, further downside pressure remains given the fundamental backdrop of the Euro-zone and the recent policy shift by the Federal Reserve. Accordingly, a test of the year low set in January may be on tap below 1.3000.
The ratio of long to short positions in the EUR/USD stands at 1.07 as nearly 52% of traders are long. Yesterday, the ratio was at 1.08 as 52% of open positions were long. In detail, long positions are 5.0% lower than yesterday and 1.6% stronger since last week. Short positions are 3.7% lower than yesterday and 10.6% weaker since last week. Open interest is 4.4% weaker than yesterday and 9.3% below its monthly average. The SSI is a contrarian indicator and signals more EUR/USD losses.
Written by Christopher Vecchio, Currency Analyst
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