SSI - EURUSD Long term Direction Remains Bullish but the Downside Risks Have Increase

The ratio of long to short positions in the EURUSD stands at -2.24 as nearly 70 percent of the traders in our sample are short EURUSD. However, since last week, a large number of speculative traders have been buying the EURUSD (long positions are up by 8.9%). When retail is short but reduces its exposure, the long term direction remains bullish but the market might have some downside in the short term. The SSI still gives us a SIGNAL TO BUY EURUSD but the downside risks have significantly increased.