Retail FX Traders Buy into Euro Weakness - Contrarian Sell Signal
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EURUSD - The ratio of long to short positions in the EURUSD stands at 1.11 as 53% of traders are long. Yesterday the ratio was 1.10; 52% of open positions were long. Long positions are 0.2% higher than yesterday and 6.3% above levels seen last week. Short positions are 1.2% lower than yesterday and 11.9% below levels seen last week. Open interest is 0.5% lower than yesterday and 2.0% 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 but unchanged since last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
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