Retail FX Traders Buy Aggressively into Euro Weakness
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EURUSD - The ratio of long to short positions in the EURUSD stands at 1.95 as 66% of traders are long. Yesterday the ratio was 2.22; 69% of open positions were long. Long positions are 1.4% lower than yesterday and 13.7% above levels seen last week. Short positions are 12.6% higher than yesterday and 16.9% above levels seen last week. Open interest is 3.0% higher than yesterday and 6.6% above its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the EURUSD may continue lower. The trading crowd has grown less net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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