Euro Uptrend Remains Intact, but next Move Pivotal
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EURUSD - The ratio of long to short positions in the EURUSD stands at -1.73 as 37% of traders are long. Yesterday the ratio was -1.72; 37% of open positions were long. Long positions are 2.2% lower than yesterday and 0.7% below levels seen last week. Short positions are 1.7% lower than yesterday and 14.3% below levels seen last week. 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 but moderated since last week. The important week-over-week shift warns that the Euro may test lows versus the US Dollar—particularly as the EURUSD continues to hold below key $1.12 resistance.
See next currency section: GBPUSD - British Pound Forecast Depends on how it Finishes the Week
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.