Euro Sentiment Gives Few Clues - Waiting for Direction
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EURUSD - The ratio of long to short positions in the EURUSD stands at 1.12 as 53% of traders are long. Yesterday the ratio was 1.02; 51% of open positions were long. Long positions are 4.2% higher than yesterday and 7.0% above levels seen last week. Short positions are 5.1% lower than yesterday and 3.5% above levels seen last week. Open interest is 0.4% lower than yesterday and 16.8% 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. Yet we would ideally see further sentiment extremes before calling for a renewed EUR/USD downtrend.
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