| Symbol | LastWeek | Present | %Long | Change: Open Interest |
Signals | Chart Links |
|---|---|---|---|---|---|---|
| EUR/USD | -1.67 | -1.67 | 37.0% | 2.9% | bullish | View Chart |
| USD/JPY | 7.49 | 16.55 | 94.0% | 66.9% | bearish | View Chart |
| GBP/USD | -3.43 | -2.37 | 30.0% | -32.2% | bullish | View Chart |
| USD/CHF | 1.24 | 2.49 | 71.0% | 2.7% | bearish | View Chart |
| USD/CAD | 2.44 | 2.01 | 67.0% | 0.5% | bearish | View Chart |
| GBP/JPY | 2.22 | 3.01 | 75.0% | -1.0% | bearish | View Chart |
Fresh Euro Highs Favored on Sentiment
EURUSD
Trading crowds turned aggressively short the Euro against the US
Dollar as the pair broke above 1.2700, and fairly consistent selling
suggests that the EURUSD could yet trade to further highs.
The pair has recently consolidated and has yet to break convincingly above the psychologically significant $1.3200 mark. Yet the trend favors further short-term gains and trading crowd sentiment leaves us in favor of further highs.
The pair has recently consolidated and has yet to break convincingly above the psychologically significant $1.3200 mark. Yet the trend favors further short-term gains and trading crowd sentiment leaves us in favor of further highs.
Our SSI ratio of long to short positions in the
EURUSD stands at -1.67 as nearly 63% of traders are short. Although past
performance is no guarantee of future results, such one-sided extremes
can often come at major turning points.
Near-term resistance remains at recent multi-month
peaks of $1.3220, while support is at 2/1 lows of $1.3025. The next move
may be pivotal, and we expect that a break to further highs remains
more likely.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
British Pound Targets Peaks
GBPUSD
Forex trading crowds have turned aggressively short the British Pound
against the US Dollar since it traded above $1.5400, giving us
consistent contrarian signal that the GBP/USD may in fact continue onto
fresh highs.
Our SSI ratio of long to short positions in the
GBP/USD stands at -2.37 as nearly 70% of traders are short. It is worth
noting that short interest is down an important 38% since last week,
while long interest fell a lesser 11% through the same stretch.
The
significant week-over-week slowdown in selling warns that the pace of
gains may slow.
Yet trading crowds remain aggressively net-short,
and we see few signs of imminent reversal. Our bias remains bullish
until further notice.
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