[I][B]- EURUSD – Euro Forecast Turns Bearish on Forex Sentiment
- GBPUSD – Trading Strategies Aggressively Long GBPUSD
- USDJPY – Japanese Yen Outlook Unclear Versus US Dollar
- USDCHF – Swiss Franc Predicted to Drop Against USD
- USDCAD – Canadian Dollar Forecast to Gain vs. US Dollar
[/B][/I]
While the SSI is available once a week on DailyFX.com, you can receive SSI readings twice a day in DailyFX Plus [I]Forex Intraday Trading Signals[/I]
The SSI sought a EURUSD rally since 1.26 and was signaling a reversal around 1.60. Find our more in the DailyFX Forex Forum
Historical Charts of Speculative Forex Trading Positioning
EURUSD – Our forex trading signals have gone aggressively short the Euro against the US Dollar, as a sharp shift in crowd sentiment suggests further EURUSD losses are likely. The ratio of long to short positions in the EURUSD stands at 1.31 as nearly 57% of traders are long. In detail, long positions are 1.4% higher than yesterday and an impressive 61.4% higher since last week. Short positions are 10.9% higher than yesterday and 8.6% weaker since last week. Traders had previously remained net-short as the Euro rallied to 1.4300, but the aggressive flip to net-long suggests further pullback is likely.
GBPUSD – Our forex trading strategies are once again aggressively long the British Pound versus the US Dollar, as a sharp shift in crowd sentiment suggests further gains are likely. The ratio of long to short positions in the GBPUSD stands at -1.88 as nearly 65% of traders are short. Yesterday, the ratio was at 1.36 as 58% of open positions were long. In detail, long positions are 34.6% lower than yesterday and 2.6% stronger since last week. Short positions are 67.1% higher than yesterday and 36.5% stronger since last week. The very sharp shift in positioning gives us a contrarian bullish bias, but it will be critical to watch whether the GBPUSD can break key range highs.
USDJPY – Our forex sentiment-based forecast for the US Dollar/Japanese Yen pair is currently unclear, and our SSI-based strategies are accordingly flat through time of writing. The ratio of long to short positions in the USDJPY stands at 1.09 as nearly 52% of traders are long. Yesterday, the ratio was at 1.30 as 57% of open positions were long. In detail, long positions are 2.2% lower than yesterday and 0.5% stronger since last week. Short positions are 17.4% higher than yesterday and 6.5% weaker since last week. Forex trading crowds have progressively grown less bullish the USDJPY as it has rallied, but we will wait until a sharper shift in sentiment before taking a firm stance on the Yen.
USDCHF – One of our sentiment-based currency trading systems is currently long the US Dollar against the Swiss Franc, as a sharp shift in positioning gives us a short-term bullish bias on the USDCHF. The ratio of long to short positions in the USDCHF stands at 1.05 as nearly 51% of traders are long. In detail, long positions are 1.5% higher than yesterday and 23.3% weaker since last week. Short positions are 1.5% lower than yesterday and a noteworthy 75.4% stronger since last week. The impressive shift in positioning gives us a short-term signal to buy the USDCHF.
USDCAD – Our sentiment-based forex trading strategies remain aggressively short the US Dollar against the Canadian Dollar, as heavily one-sided trader positioning signals further losses are likely. The ratio of long to short positions in the USDCAD stands at 3.24 as nearly 76% of traders are long. In detail, long positions are 2.2% higher than yesterday and 2.2% stronger since last week. Short positions are 1.3% higher than yesterday and 7.6% stronger since last week. Traders have remained heavily short the USDCAD as it has fallen over 800 pips from recent peaks. It will be critical to watch whether the pair can break significant lows near 1.0800, but our short-term bias remains bearish on forex sentiment.
How do we interpret the SSI? Read our brand-new Primer on the SSI.
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[B]Have any further questions about the SSI and forex positioning data? Ask the author David Rodríguez on our forex forum.
[/B] We love getting feedback on our reports. Tell us how we’re doing: E-mail the author of this report at <[email protected]>.