Euro Positioning And Open Interest May Signal An Impending Flip

[B]EUR/USD[/B][B] Ratio: -1.16
[/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             -1.47             [B]-1.16[/B]             46%             -10.06%             Bullish                


[B]EURUSD – [/B]The sentiment extreme among EURUSD retail traders continued to settle through this past week. With positioning coming closer and closer to a flip and open interest tumbling, the euro’s long rally may be coming on its first serious correction in months. The EURUSD’s SSI reading stands at -1.16 compared to -1.47 from last week and -1.65 yesterday during the pair’s sharp 250-point advance. The details further reveal speculators are running out of patience with trying to consistently call a top. Long positions have grown 11.7% from yesterday and 2.2% from last Thursday. Shorts, on the other hand, have dropped 21.6% since Wednesday and 18.4% from last week. Also interesting is the steady drop in net positioning. Open interest is 9.1% lower than yesterday and nearly 15% weaker than last week. Altogether, the SSI is still pointing to further euro gains, but a flip in sentiment and spot may be close at hand.