[B]EUR[/B][B]/USD Ratio: 1.50
[/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 1.00 [B]1.50[/B] 60% -8.19% Bearish
[B]EURUSD[/B] – EURUSD has put in for its third test of support around 1.5350; and retail traders are clearly expecting this formation to turn into a triple bottom. The euro pair’s Speculative Sentiment Index ratio rose from parity last week to a reading of 1.50 today with nearly 60% of the speculative community holding long positions. This is a remarkable reading from the positioning gauge as the market hasn’t seen such a positive bias since October of 2006. Since mid-April, when EURUSD pulled back from its record high, traders have grown more comfortable in playing the boundaries of the consolidation area seen between 1.5300 and 1.5800. Complacency and confidence is often at its greatest among the retail community right before a major break out. The indicator’s details highlight the shift. Long positions are 8% higher than yesterday and 23.7% greater than last week. At the same time, shorts dropped 10.2% from Wednesday and 33.9% over the week. And, despite the directionless price action, open interest was only 3.8% lower on the week and 2.1% above the monthly average.