Heavily One-sided Trades Point to Euro Gains
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EURUSD - The ratio of long to short positions in the EURUSD stands at -2.44 as 29% of traders are long. Yesterday the ratio was -2.11; 32% of open positions were long. Long positions are 5.5% lower than yesterday and 9.2% below levels seen last week. Short positions are 9.2% higher than yesterday and 17.4% above levels seen last week. Open interest is 4.5% higher than yesterday and 13.0% 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 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 - British Pound Forecast to Gain on Material Shift in Positions
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.