Minor Shift in Crowd Positioning Leaves Euro Outlook Mixed
EURUSD - The ratio of long to short positions in the EURUSD stands at -1.44 as 41% of traders are long. Yesterday the ratio was -1.36; 42% of open positions were long. Long positions are 1.8% lower than yesterday and 0.8% above levels seen last week. Short positions are 4.4% higher than yesterday and 6.4% above levels seen last week. Open interest is 1.8% higher than yesterday and 0.2% 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.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
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