Euro Downtrend Remains Intact
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EURUSD –The ratio of long to short positions in the EURUSD stands at 1.12 as 53% of traders are long. Yesterday the ratio was 1.38; 58% of open positions were long. Long positions are 7.7% lower than yesterday and 19.6% above levels seen last week. Short positions are 14.4% higher than yesterday and 17.1% above levels seen last week. Open interest is 1.6% higher than yesterday and 10.9% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the EURUSD may continue lower. The trading crowd has grown less net-long from yesterday but further long since last week.
Trader indecision makes it difficult to establish a firm trading bias, but the overall downtrend keeps our attention lower in the EURUSD.
See next currency section: GBPUSD - British Pound Likely to Lose Further
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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