The Euro losses continue to mount as EUR/USD drops below 1.1000 for the first time since 2003! Looking at the monthly candlestick chart for the past 15 years, one wonders how low this may drop.
According to the weekly SSI report from DailyFX strategist David Rodriguez, positioning data indicates the Euro downtrend remains intact.
[B]EURUSD[/B]The ratio of long to short positions in the EURUSD stands at 1.12 as 53% of traders are long. Yesterday the ratio was 1.38; 58% of open positions were long. Long positions are 7.7% lower than yesterday and 19.6% above levels seen last week. Short positions are 14.4% higher than yesterday and 17.1% above levels seen last week. Open interest is 1.6% higher than yesterday and 10.9% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the EURUSD may continue lower. The trading crowd has grown less net-long from yesterday but further long since last week.
Trader indecision makes it difficult to establish a firm trading bias, but the overall downtrend keeps our attention lower in the EURUSD.
Click Euro Downtrend Remains Intact for the full report