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EURUSD –Retail traders remain aggressively short the Euro versus the US Dollar, and a contrarian view of crowd sentiment leaves us watching for continued strength.
The ratio of long to short positions in the EURUSD stands at -2.00 as 33% of traders are long. Yesterday the ratio was -2.06; 33% of open positions were long. Long positions are 4.1% lower than yesterday and 5.5% below levels seen last week. Short positions are 6.9% lower than yesterday and 21.8% above levels seen last week. Open interest is 6.0% lower than yesterday and 7.3% above 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.
See next currency section: GBPUSD - British Pound Outlook Remains Bearish
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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