Tanalys

Sentiment Eases as Euro Falls Back Versus Dollar, Pound

Sentiment_Eases_as_Euro_Falls_Back_Versus_Dollar_Pound_body_Picture_1.png, Sentiment Eases as Euro Falls Back Versus Dollar, Pound

EURUSDThe ratio of long to short positions in the EURUSD stands at -2.13 as 32% of traders are long. Yesterday the ratio was -1.92; 34% of open positions were long. Long positions are 12.7% lower than yesterday and 28.6% above levels seen last week. Short positions are 2.7% lower than yesterday and 26.0% below levels seen last week. Open interest is 6.1% lower than yesterday and 0.1% above its monthly average.

We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the EURUSD may continue higher. The trading crowd has grown further net-short from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.

— Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

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