Crowds Remain Heavily Long the Euro - We Like Selling
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EURUSD - The ratio of long to short positions in the EURUSD stands at 2.05 as 67% of traders are long. Yesterday the ratio was 1.77; 64% of open positions were long. Long positions are 5.2% higher than yesterday and 0.0% below levels seen last week. Short positions are 9.2% lower than yesterday and 0.1% above levels seen last week. Open interest is 0.1% higher than yesterday and 5.5% 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 further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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