Euro Short-Term Forecast Mixed, but Broader Trend Points Lower
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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 -1.19; 46% of open positions were long. Long positions are 7.9% higher than yesterday and 28.9% below levels seen last week. Short positions are 16.2% lower than yesterday and 20.7% below levels seen last week. Open interest is 5.1% lower than yesterday and 26.7% 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 flipped from net-short to net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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