The ratio of long to short positions in the EURUSD stands at -2.55 as nearly 72% of traders are short, according to our real-time survey on the positioning of more than 20.000 traders. However, retail has been buying back the EURUSD, mostly on stop-loss liquidation (short positions are 10 percent weaker since last week). 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. Still, the SSI gives us a medium strength signal to BUY EURUSD and we believe the euro could test 1.45 in the week ahead.
