British Pound Forecast to Rally further on Forex Sentiment.

Summary: Eoe1/4Ao EURUSD Eoe1/4" Euro Outlook Remains Bullish Against Dollar Eoe1/4Ao GBPUSD Eoe1/4" British Pound Forecast to Gain Further Eoe1/4Ao USDJPY Eoe1/4" Japanese Yen Bias Shifts Sharply Eoe1/4Ao...

• EURUSD - Euro Outlook Remains Bullish Against Dollar • GBPUSD - British Pound Forecast to Gain Further • USDJPY - Japanese Yen Bias Shifts Sharply • USDCHF - Swiss Franc Forecast Positive • USDCAD - Canadian Dollar Forecast to Gain Further • GBPJPY - Sentiment-based Bias Points to GainsWhile 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 Forex trading crowds remain heavily net-long the US Dollar through time of writing, leaving little scope for a short-term Dollar recovery. Last week we called for continued USD losses on one-sided positioning, and indeed the Greenback continue to lose ground as our SSI ratios remained extreme. More recently we have seen somewhat of a moderation in Dollar longs-especially against the Euro, Japanese Yen, and Canadian Dollar. This ostensibly leaves room for further dollar pullbacks, but we can hardly call for major reversals until we see price move substantively in the same direction. As it stands, we remain bearish and forecast losses in the US Dollar. Historical Charts of Speculative Forex Trading Positioning EURUSD - The ratio of long to short positions in the EURUSD stands at -1.53 as nearly 61% of traders are short. Yesterday, the ratio was at -2.32 as 70% of open positions were short. In detail, long positions are 26.6% higher than yesterday and 24.9% stronger since last week. Short positions are 16.2% lower than yesterday and 9.5% weaker since last week. Open interest is 3.3% weaker than yesterday and 0.3% 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 -1.40 as nearly 58% of traders are short. Yesterday, the ratio was at -1.00 as 50% of open positions were short. In detail, long positions are 23.9% lower than yesterday and 25.5% weaker since last week. Short positions are 6.3% higher than yesterday and 5.2% weaker since last week. Open interest is 8.8% weaker than yesterday and 6.9% below 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 1.81 as nearly 64% of traders are long. Yesterday, the ratio was at 2.46 as 71% of open positions were long. In detail, long positions are 10.6% lower than yesterday and 28.3% weaker since last week. Short positions are 21.2% higher than yesterday and 48.8% stronger since last week. Open interest is 1.4% weaker than yesterday and 6.4% below 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 3.13 as nearly 76% of traders are long. Yesterday, the ratio was at 3.44 as 77% of open positions were long. In detail, long positions are 5.0% lower than yesterday and 9.1% stronger since last week. Short positions are 4.3% higher than yesterday and 7.0% weaker since last week. Open interest is 2.9% weaker than yesterday and 1.2% 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 2.54 as nearly 72% of traders are long. Yesterday, the ratio was at 3.06 as 75% of open positions were long. In detail, long positions are 11.0% lower than yesterday and 13.5% weaker since last week. Short positions are 7.1% higher than yesterday and 19.0% stronger since last week. Open interest is 6.5% weaker than yesterday and 3.1% 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 -1.19 as nearly 54% of traders are short. Yesterday, the ratio was at 1.71 as 63% of open positions were long. In detail, long positions are 27.5% lower than yesterday and 31.0% weaker since last week. Short positions are 47.6% higher than yesterday and 37.1% stronger since last week. Open interest is 0.2% stronger than yesterday and 13.6% below its monthly average. The SSI is a contrarian indicator and signals more GBPJPY gains. How do we interpret the SSI? Read our brand-new Primer on the SSI. Follow up-to-the-minute updates on the SSI through DailyFX+ and our newest product: The Forex Stream Have any further questions about the SSI and forex positioning data? Ask the author David Rodriguez on our forex forum. We love getting feedback on our reports. Tell us how we're doing: E-mail the author of this report at [e-mail].

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