Euro Eyes Fresh Lows versus US Dollar
There are 1.48 traders long EURUSD for every one that is short, which is a noteworthy jump from yesterday when the same ratio stood at 1.27:1. Long positions fell 4.9% overnight but are 19.6% above where they were last week. Short positions dropped 17.9% overnight and are 25.3% weaker since last week.
When we trading crowds buying into weakness we often look to go in the opposite direction and sell. Yet we caution against aggressive short positions as the risk of bounce is high; volatility will almost certainly slow as we go into the final weeks of 2011.
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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