[B]EUR[/B][B]/USD Ratio: -1.52
[/B][B]Signal: Bullish[/B]
[B]Currency[/B] [B]Last Week[/B] [B]Present*[/B] [B]% Long[/B] [B]% Change in Positions Outstanding[/B] [B]Signal[/B] EURUSD 1.34 [B]-1.52[/B] 40% -1.77% Bullish
[B]EURUSD – [/B]Since EURUSD yielded to very public support seen around 1.5300 two weeks ago, positioning among the retail group has quickly turned against the developing move. Typically good range traders, the speculative community is still prone to common trading mistakes – such as setting stops too close and taking profit too early. This may be a contributing factor behind the flip in the EURUSD’s Speculative Sentiment Index ratio this week. The positioning gauge stood at -1.52 with nearly 60% of traders holding short positions. This figure stands in stark contrast to the 1.34 reading of last week and 1.50 from two Thursday’s ago. Such a shift in positioning reflects the retail crowd’s attempts at finding a nearby range top. The report’s details show a relatively uniform market flip. Long positions dropped 20.6% from yesterday and are 23% below last week’s levels. On the other side of the trade, shorts have grown 16.9% over the past 24 hours and risen 20% since last week. Open interest further suggests the opportunity at trading a broad range has kept most retail traders in the market as they merely reverse their positions when technicals come into view. Net positioning was only 0.5% higher than last week and 2.5% above the monthly average. Though the SSI’s effectiveness ebbs when the market holds to clear ranges, the EURUSD sentiment indicator points to further gains within the limits of the broad technical formation.