Forex Traders Buying Aggressively into Euro Weakness versus US Dollar
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EURUSD - The ratio of long to short positions in the EURUSD stands at 1.75 as 64% of traders are long. Yesterday the ratio was 1.43; 59% of open positions were long. Long positions are 12.2% higher than yesterday and 6.6% above levels seen last week. Short positions are 8.5% lower than yesterday and 10.8% below levels seen last week. Open interest is 3.7% higher than yesterday and 1.6% below 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 and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
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