EURUSD – Euro Forecast Remains Bullish on Sentiment Extremes
GBPUSD – British Pound Outlook Positive Against US Dollar
USDJPY – Japanese Yen Forecast to Gain Further against USD
USDCHF – Swiss Franc Trading Bias Bullish on Sentiment
USDCAD – Canadian Dollar Forecast to Gain Further
[I]While the SSI is available once a week on DailyFX.com, you can receive SSI readings twice a day in DailyFX Plus Forex Intraday Trading Signals
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Forex trading crowds remain aggressively long US Dollars against all major counterparts, giving us strong contrarian signal to sell into US Dollar weakness. Indeed, the number of traders long the USD versus the Euro surged 40% through the past week’s trade. Those short the EURUSD now outnumber those long by an impressive 2.25 to 1, and one-sided forex sentiment gives us fairly clear signal to take the other side of that trade. Sentiment is similarly extreme in the USDJPY, USDCHF, and USDCAD pairs—all giving consistent signal to sell US Dollars.
[B]Historical Charts of Speculative Forex Trading Positioning[/B]
EURUSD - The ratio of long to short positions in the EURUSD stands at -2.25 as nearly 69% of traders are short. Yesterday, the ratio was at -2.71 as 73% of open positions were short. In detail, long positions are 9.9% higher than yesterday and 26.1% weaker since last week. Short positions are 8.7% lower than yesterday and 40.0% stronger since last week. Open interest is 3.7% weaker than yesterday and 9.3% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.
GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.54 as nearly 61% of traders are short. Yesterday, the ratio was at -1.27 as 56% of open positions were short. In detail, long positions are 3.1% lower than yesterday and 19.3% weaker since last week. Short positions are 17.4% higher than yesterday and 22.8% stronger since last week. Open interest is 8.3% stronger than yesterday and 9.6% above its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains.
USDJPY - The ratio of long to short positions in the USDJPY stands at 3.38 as nearly 77% of traders are long. Yesterday, the ratio was at 3.66 as 79% of open positions were long. In detail, long positions are 0.3% lower than yesterday and 2.7% stronger since last week. Short positions are 8.1% higher than yesterday and 12.9% weaker since last week. Open interest is 1.5% stronger than yesterday and 17.8% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.
USDCHF - The ratio of long to short positions in the USDCHF stands at 4.86 as nearly 83% of traders are long. Yesterday, the ratio was at 5.21 as 84% of open positions were long. In detail, long positions are 8.1% lower than yesterday and 40.8% stronger since last week. Short positions are 1.6% lower than yesterday and 10.9% weaker since last week. Open interest is 7.1% weaker than yesterday and 25.7% above its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses.
USDCAD - The ratio of long to short positions in the USDCAD stands at 2.42 as nearly 71% of traders are long. Yesterday, the ratio was at 2.69 as 73% of open positions were long. In detail, long positions are 8.1% lower than yesterday and 22.4% stronger since last week. Short positions are 2.0% higher than yesterday and 23.0% weaker since last week. Open interest is 5.4% weaker than yesterday and 1.1% above its monthly average. The SSI is a contrarian indicator and signals more USDCAD losses.
GBPJPY - The ratio of long to short positions in the GBPJPY stands at 1.38 as nearly 58% of traders are long. Yesterday, the ratio was at 1.45 as 59% of open positions were long. In detail, long positions are 8.7% lower than yesterday and 0.6% stronger since last week. Short positions are 4.1% lower than yesterday and 2.3% stronger since last week. Open interest is 6.8% weaker than yesterday and 9.2% above its monthly average. The SSI is a contrarian indicator and signals more GBPJPY losses.
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