One-sided Forex Trader Sentiment Points to Euro Gains
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EURUSD - The ratio of long to short positions in the EURUSD stands at -2.02 as 33% of traders are long. Yesterday the ratio was -2.12; 32% of open positions were long. Long positions are 2.7% higher than yesterday and 4.5% above levels seen last week. Short positions are 2.3% lower than yesterday and 0.4% below levels seen last week. Open interest is 0.7% lower than yesterday and 12.4% 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. The trading crowd has grown less net-short from yesterday and last week. The fact that crowds remain net-short gives us a steadily bullish trading bias.
See next currency section: GBPUSD - British Pound Remains a Sell versus US Dollar
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.