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While the SSI is available once a week on DailyFX.com, you can receive SSI readings twice a day in DailyFX Plus Forex Intraday Trading Signals

Forex trading crowds remain aggressively long US Dollars against all major counterparts, giving us strong contrarian signal to sell into US Dollar weakness. Indeed, the number of traders long the USD versus the Euro surged 40% through the past week’s trade. Those short the EURUSD now outnumber those long by an impressive 2.25 to 1, and one-sided forex sentiment gives us fairly clear signal to take the other side of that trade. Sentiment is similarly extreme in the USDJPY, USDCHF, and USDCAD pairs—all giving consistent signal to sell US Dollars.

Forex_SSI_2009-09-10_1

Historical Charts of Speculative Forex Trading Positioning

Forex_SSI_2009-09-10_2

EURUSD - The ratio of long to short positions in the EURUSD stands at -2.25 as nearly 69% of traders are short. Yesterday, the ratio was at -2.71 as 73% of open positions were short. In detail, long positions are 9.9% higher than yesterday and 26.1% weaker since last week. Short positions are 8.7% lower than yesterday and 40.0% stronger since last week. Open interest is 3.7% weaker than yesterday and 9.3% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.

Forex_SSI_2009-09-10_2


GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.54 as nearly 61% of traders are short. Yesterday, the ratio was at -1.27 as 56% of open positions were short. In detail, long positions are 3.1% lower than yesterday and 19.3% weaker since last week. Short positions are 17.4% higher than yesterday and 22.8% stronger since last week. Open interest is 8.3% stronger than yesterday and 9.6% above its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains.

Forex_SSI_2009-09-10_2


USDJPY - The ratio of long to short positions in the USDJPY stands at 3.38 as nearly 77% of traders are long. Yesterday, the ratio was at 3.66 as 79% of open positions were long. In detail, long positions are 0.3% lower than yesterday and 2.7% stronger since last week. Short positions are 8.1% higher than yesterday and 12.9% weaker since last week. Open interest is 1.5% stronger than yesterday and 17.8% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.

Forex_SSI_2009-09-10_2


USDCHF - The ratio of long to short positions in the USDCHF stands at 4.86 as nearly 83% of traders are long. Yesterday, the ratio was at 5.21 as 84% of open positions were long. In detail, long positions are 8.1% lower than yesterday and 40.8% stronger since last week. Short positions are 1.6% lower than yesterday and 10.9% weaker since last week. Open interest is 7.1% weaker than yesterday and 25.7% above its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses.

Forex_SSI_2009-09-10_2


USDCAD - The ratio of long to short positions in the USDCAD stands at 2.42 as nearly 71% of traders are long. Yesterday, the ratio was at 2.69 as 73% of open positions were long. In detail, long positions are 8.1% lower than yesterday and 22.4% stronger since last week. Short positions are 2.0% higher than yesterday and 23.0% weaker since last week. Open interest is 5.4% weaker than yesterday and 1.1% above its monthly average. The SSI is a contrarian indicator and signals more USDCAD losses.

Forex_SSI_2009-09-10_2



GBPJPY - The ratio of long to short positions in the GBPJPY stands at 1.38 as nearly 58% of traders are long. Yesterday, the ratio was at 1.45 as 59% of open positions were long. In detail, long positions are 8.7% lower than yesterday and 0.6% stronger since last week. Short positions are 4.1% lower than yesterday and 2.3% stronger since last week. Open interest is 6.8% weaker than yesterday and 9.2% above its monthly average. The SSI is a contrarian indicator and signals more GBPJPY losses.

How do we interpret the SSI? Read our brand-new Primer on the SSI.

Follow up-to-the-minute updates on the SSI through DailyFX+ and our newest product: The Forex Stream



We love getting feedback on our reports. Tell us how we’re doing: E-mail the author of this report at drodriguez@dailyfx.com.