Euro Likely Turns Corner as Crowds Sell Aggressively
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EURUSD – The ratio of long to short positions in the EURUSD stands at -1.92 as 34% of traders are long. Yesterday the ratio was -1.81; 36% of open positions were long. Long positions are 2.0% higher than yesterday and 30.5% below levels seen last week. Short positions are 8.3% higher than yesterday and 41.8% above levels seen last week. Open interest is 6.1% higher than yesterday and 12.9% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the EURUSD may continue higher. The trading crowd has grown further net-short from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
See next currency section: GBPUSD - British Pound Remains in Clear Downtrend
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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