The ratio of long to short positions in the EURUSD stands at -1.60 as nearly 61% of traders are short, according to the FXCM execution desk data on the positioning of more than 7.214 retail traders. In detail, long positions are 23.1% higher than yesterday and 8.0% weaker since last week. Short positions are 16.8% higher than yesterday and 29.1% stronger since last week. In the past, when retail was short and selling more, the EURUSD has rallied in the following days. Assuming this contrarian pattern will occur again, the SSI gives us a signal to buy euros and we believe the EUR/USD could test 1.50 in the week ahead.
[I]We have been calling for a rally in the EURUSD since the pair was trading at 1.26. Find our more in the DailyFX Forum.[/I]
[B]For information on an FXCM Managed Fund that takes advantage of the SSI, please review our Sentiment Fund at: [U]http://www.FXCMManagedFunds.com[/U] or call +1 646-432-2968[/B]