Sentiment

Introduction to Sentiment Index
The SSI is a powerful tool unique to FXCM. It shows you FXCM's trading book: what our clients are trading. At a glance, you can see where traders are in the market. Are there large numbers of buyers or sellers? Are they exiting or entering? FXCM's SSI is updated twice every day, and the information is current - unlike the COT report.
Updated: Index is reported every Thursday.
Symbol Present %L / %S % COI Sgnl
Table Key
Bearish
Signal
Bullish
Signal
Mixed
Signal
% L
Long %
% S
Short %
% COI
Change Open Interest %

Euro Breakout is the Real Deal

Quantitative analysis, algorithmic trading, and retail trader sentiment.

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Euro Breakout is the Real Deal

Why and how do we use the SSI in trading? View our video and download the free indicator here

EURUSD – Retail forex traders have sold aggressively into the recent Euro rally, and today’s sharp breakout may likely prove the break higher we’ve waited for. Last week we were early in calling for such a EUR/USD break as price remained in its tight range. Yet the most recent price move and concurrent shift in sentiment gives confidence that today’s move may be the ‘real deal’.

Our data shows there are currently 2.1 Euro short positions for every 1 long—up substantially from the 1.2:1 seen last week. A contrarian view of crowd sentiment leaves us in favor of buying into gains.

And though there are clearly no guarantees that price will not return to its previous trading range, the severity of today’s price breakout and sentiment shift points to continued EUR/USD strength.

See next currency section: GBPUSD - This Indicator Called the British Pound Reversal, What Now?

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX



This Indicator Called the British Pound Reversal - What Now?

Quantitative analysis, algorithmic trading, and retail trader sentiment.

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This Indicator Called the British Pound Reversal - What Now?

Why and how do we use the SSI in trading? View our video and download the free indicator here

GBPUSD– A remarkable shift in retail FX trader sentiment helped confirm that the British Pound set a lasting low through last week, and a continued move in both price and sentiment points to further GBP/USD gains.

Current data shows there are 1.2 open long positions in the GBP/USD for every 1 short, and this represents a substantial change from the 3:1 seen just over a week ago. Indeed, total open short positions have surged 56 percent while longs have fallen 14 percent.

The severity of the GBP/USD rally along with the marked shift in trader positioning points to continued British Pound strength.

See next currency section:USDCAD - Canadian Dollar Rally is Set to Last

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX



Australian Dollar Outlook Uncertain until this Changes

Quantitative analysis, algorithmic trading, and retail trader sentiment.

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Australian Dollar Outlook Uncertain until this Changes

Why and how do we use the SSI in trading? View our video and download the free indicator here

AUDUSD– A substantial US Dollar sell-off leaves the Australian Dollar higher through recent trading, but a fairly muted shift in retail forex trader sentiment gives little reason to expect this AUD/USD rally will be sustained.

Our data shows that retail traders are almost exactly neutral on the AUD/USD—51 percent of current open positions are long. Traders have most recently sold into AUD gains, and short interest is up 9 percent since last week. Yet we would need to see a more sustained shift towards selling to call for a larger AUD/USD breakout with real confidence.

See next currency section:NZDUSD - New Zealand Forecast Points to Further Gains

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX



Canadian Dollar Rally is Set to Last

Quantitative analysis, algorithmic trading, and retail trader sentiment.

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Canadian Dollar Rally is Set to Last

Why and how do we use the SSI in trading? View our video and download the free indicator here

USDCAD– A remarkable shift in retail forex trader positions warns that the US Dollar may continue lower versus the resurgent Canadian Dollar. Our data shows there are currently 1.3 open USD/CAD long positions for every 1 short, and a contrarian view of crowd sentiment leaves us in favor of selling into USD/CAD declines.

Indeed, last week we noted the likelihood that the US Dollar set a top versus its Canadian counterpart; the further flip in retail FX sentiment acts as further confirmation. We will maintain our bearish trading bias until further notice.

See next currency section:AUDUSD - Australian Dollar Outlook Uncertain until this Changes

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX



New Zealand Forecast Points to Further Gains

Quantitative analysis, algorithmic trading, and retail trader sentiment.

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New Zealand Forecast Points to Further Gains

Why and how do we use the SSI in trading? View our video and download the free indicator here

NZDUSD – A substantial shift in retail forex trader sentiment warns that the New Zealand Dollar may continue higher versus the US Dollar. Our data shows there are currently 1.5 open positions short in the NZD/USD for every 1 that is long, and a contrarian view of crowd positioning points to further NZD/USD gains. Indeed, total short interest surged by nearly 60 percent since last week, while long interest has fallen 8 percent.

The remarkable shift in sentiment along with the sharp break in price points to further New Zealand Dollar strength.

See next currency section: XAUUSD - Indicator Accurately Called Gold Rally, Now What?

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX



Gold Price versus US Dollar Likely to Continue Lower

Quantitative analysis, algorithmic trading, and retail trader sentiment.

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Gold Price versus US Dollar Likely to Continue Lower

Why and how do we use the SSI in trading? View our video and download the free indicator here

Gold– Heavily one-sided retail forex trader sentiment warns that Gold prices may continue to decline through near-term trading. Our trading sample shows that total open long positions outnumber those short by nearly 3 to 1, and until we see a meaningful shift in sentiment we will maintain our contrarian calls for further XAU/USD weakness.

See next currency section:EURUSD - Euro Remains a Sell as Trading Crowds Buy

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX



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