Euro Forecast Roughly Unclear on Indecisive Crowd Trading

Sunday, December 28, 2008

EUR/USD ratio: -1.06

Trading Forecast: Bullish


EURUSD – The ratio of long to short positions in the EURUSD stands at -1.06 as nearly 51% of traders are short. Yesterday, the ratio was at -1.08 as 52% of open positions were short.

In detail, long positions are 19.2% higher than yesterday and 17.2% stronger since last week. Short positions are 16.7% higher than yesterday and 15.7% stronger since last week.

Open interest is 17.9% stronger than yesterday and 22.1% below its monthly average. The SSI is a contrarian indicator, but nearly-neutral positioning gives us little bias through this holiday-shortened week of trade. Regardless, our SSI-based forex trading signals remain short the Euro/US Dollar via a sentiment-based trading strategy.


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