FX Traders Sell Aggressively into Post-Italian Referendum Euro Bounce
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EURUSD - The ratio of long to short positions in the EURUSD stands at 1.09 as 52% of traders are long. Yesterday the ratio was 1.47; 59% of open positions were long. Long positions are 11.1% lower than yesterday and 26.6% below levels seen last week. Short positions are 19.2% higher than yesterday and 37.6% above levels seen last week. Open interest is 1.2% higher than yesterday and 1.1% 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.