EURUSD Positioning At Parity As Pair Avoids Major Technical Levels

[B]EUR[/B][B]/USD Ratio: 1.00
[/B][B]Signal: Bearish[/B]

                                  [B]Currency[/B]             [B]Last Week[/B]             [B]Present*[/B]             [B]% Long[/B]             [B]% Change in Positions   Outstanding[/B]             [B]Signal[/B]                               EURUSD             1.29             [B]1.00[/B]             50%             1.95%             Bearish                


[B]EURUSD – [/B]The change in speculators’ positioning across the majors this past week implies the US dollar could be setting up for a major trend change – event risk wiling. The one exception seems to be EURUSD. After a few weeks of retailers flipping from net short to net long and back again, the Speculative Sentiment Index now stands exactly at parity (1.00). This neutral reading follows last week’s 1.29 figure where 56% of traders were long and the -1.13 number before that. The balanced signal from the sentiment gauge is well attuned to underlying spot which has maintained a reasonable distance from the boundaries of a broad range between 1.53 and 1.60. However, despite the stagnate reading from the ratio, the report’s details show that trading has been very active. Long positions have dropped 11% since Wednesday and are 14.3% lower weaker last week. At the same time, shorts have surged 24.7% since yesterday and in turn left short interest 25.9% higher than last week’s levels. What’s more, open interest was 1.9% higher on the week and 6.4% above the monthly average, indicating more retail traders are entering into the mature trend.