Forex Positioning in the Euro/US Dollar

EURUSD – Forex trading speculators recently began selling the euro against the US dollar, with a flip in the FXCM SSI signaling that short-term gains were likely. The forex trading crowd continues net-short the EURUSD, but increased indecisiveness means that positioning can and has flipped on an intraday basis. The ratio of long to short positions in the EURUSD stands at -1.07 as nearly 52% of traders are short, but open interest is a surprising 28.6 percent below its monthly average—underlining the level of fear across forex trading markets. Traders are unwilling to take on risk during difficult market conditions—especially as volatility reaches historic highs. All the same, the SSI is a contrarian signal and signals further EURUSD gains.