[B]EUR[/B][B]/USD Ratio: 1.31
[/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 [B]1.14[/B] [B]1.31[/B] 57% 2.05% Bearish
[B]EURUSD – [/B]The flip in EURUSD speculative positioning has held its ground over the past week, suggesting there may be more momentum for a genuine reversal rather than a mere pull back like in March and November. Price action looks as if a change in trend is already playing out. When EURUSD fell below 1.5800, a long-term rising trendline was broken. The next step in the bearish downdraft was spot’s drop below the 1.5500 milestone. However, with the Speculative Sentiment Index ratio standing only at 1.31 (with 57% of traders long), the contrarian indicator is still mild meaning each psychological level could develop into a significant hurdle. Looking at the details of the survey, the shift in sentiment seems to have been orderly. Long positions rose 8.2% from yesterday and are only 7.3% higher than a week ago. At the same time, the move below 1.5500 has led short positions to fall 14.5% since yesterday – though they are only 4.1% weaker than last week. Overall, open interest is only 3.3% greater than last week and 6.0% above the monthly average.