Euro Forecast to Decline Further on Shift in Forex Sentiment

[B]EURUSD[/B] – Extremely choppy Euro/US Dollar price action has made for sharp shifts in our sentiment indicator, and the most recent turn suggests that the EURUSD could continue to decline. The ratio of long to short positions in the EURUSD stands at -1.10 as nearly 52% of traders are short. Yesterday, the ratio was at -1.72 as 63% of open positions were short. In detail, long positions are 29.1% higher than yesterday and 13.3% stronger since last week. Short positions are 17.0% lower than yesterday and 1.5% weaker since last week. The sharp jump in long positions and similar drop in short positions gives us contrarian signal to look for further EURUSD losses.