Forex Trader Sentiment Switches Direction on Euro
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EURUSD - The ratio of long to short positions in the EURUSD stands at -1.40 as 42% of traders are long. Yesterday the ratio was -1.67; 37% of open positions were long. Long positions are 0.9% higher than yesterday and 33.6% below levels seen last week. Short positions are 15.3% lower than yesterday and 15.9% above levels seen last week. Open interest is 9.2% lower than yesterday and 6.3% 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 unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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