Retail FX Sentiment Points to Further Euro Strength
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EURUSD - The ratio of long to short positions in the EURUSD stands at -1.71 as 37% of traders are long. Yesterday the ratio was -1.51; 40% of open positions were long. Long positions are 9.0% lower than yesterday and 15.9% below levels seen last week. Short positions are 3.1% higher than yesterday and 11.4% above levels seen last week. Open interest is 1.7% lower than yesterday and 3.8% 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 and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
See next currency section: GBPUSD - Shift in Forex Trader Sentiment Favors British Pound Strength
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.