Euro Forecast Remains Bullish vs USD
EURUSD – Trading crowds turned aggressively short the Euro against the US Dollar when the pair traded near the 1.3350 mark and continue to remain short, giving contrarian signal that the pair may continue its advance. The ratio of long to short positions in the EURUSD stands at -1.59 as nearly 61% of traders are short. This is mostly unchanged from yesterday, but it serves to note that long positions are 10.3 percent higher than last week while short positions fell 6.5 percent through the same stretch.
We have most recently seen traders pull back their short positions as the Euro itself trades off of its highs. Yet as long as the SSI ratio remains negative we will maintain our contrarian bullish bias and call for further strength.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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