Forex Traders Forecast EURUSD Rallies Before Further Declines

[DailyFx]

EUR/USD Ratio: 1.17
Signal: Bearish



Currency Last Week Present* % Long % Change in Positions Outstanding Signal EURUSD 1.25 1.17 54% -6.94% Bearish




EURUSD – Forex traders continue to buy euros, and our forex positioning data gives us forecasts to expect further EURUSD losses through the medium term. Yet we see that the number of currency traders long the EURUSD fell precipitously following the forex pair’s noteworthy breakdown earlier this month, and we have since been arguing that we may see a short term EURUSD rally before further losses. The SSI ratio currently stands at 1.17, as only 54 percent of forex traders are currently long the euro. Typically we wait for much more extreme readings, such as SSI ratios beyond 2.0 or below -2.0 to give clear signal to go long or short the currency. This is precisely what happened prior to the EURUSD’s break below 1.50, and we have since seen the SSI ratio become much less extreme. Our Senior Strategist forecasts that the euro will rally further through short term trade; tell us what you believe in our forex forum EURUSD thread.