Traders Selling into Modest US Dollar Bounce

EURUSD - The ratio of long to short positions in the EURUSD stands at -2.61 as 28% of traders are long. Yesterday the ratio was -2.54; 28% of open positions were long. Long positions are 5.7% lower than yesterday and 28.4% above levels seen last week. Short positions are 3.1% lower than yesterday and 19.4% below levels seen last week. Open interest is 3.8% lower than yesterday and 14.8% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the EURUSD may continue higher. The trading crowd has grown further net-short from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.

 USDJPY - The ratio of long to short positions in the USDJPY stands at 1.83 as 65% of traders are long. Yesterday the ratio was 1.92; 66% of open positions were long. Long positions are 2.6% lower than yesterday and 17.1% below levels seen last week. Short positions are 2.3% higher than yesterday and 16.2% above levels seen last week. Open interest is 0.9% lower than yesterday and 8.2% below 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 USDJPY may continue lower. The trading crowd has grown less net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.