Crowd Still Hesitant to Let Go of Net-Short EUR/USD Position
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EURUSD - The ratio of long to short positions in the EURUSD stands at -1.25 as 44% of traders are long. Yesterday the ratio was -1.62; 38% of open positions were long. Long positions are 8.4% higher than yesterday and 8.7% below levels seen last week. Short positions are 16.3% lower than yesterday and 6.5% below levels seen last week. Open interest is 6.9% lower than yesterday and 9.5% 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 less net-short from yesterday but further short since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See the next currency section: GBP/USD - Rebound Potential Limited as Crowd Maintains Net-Long GBP/USD
--- Written by Christopher Vecchio, Currency Strategist
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