· GBP/USD – Surprising News of BoE Walton’s Death Stops Out Longs, Pushing Ratio Back into Deep Positive Territory
· USD/CHF – Sharp Increase Speculators Trading USD/CHF
Euro SSI Signals a Possible Test of 1.25
Written by Kathy Lien, Chief Strategist
· EUR/USD – SSI Signals a Possible Test of 1.25
As of 5am EST, the ratio of longs to shorts in the EUR/USD was -1.26, which is within the extreme +/- 3 range. The EUR/USD ratio flipped from long to short Wednesday afternoon after the positive SSI reaped us over 300 points in profits over the past 2 weeks. However despite the brief 50 point rally since the flip, the ratio has flipped back to positive once again. We usually only cite the 5am SSI numbers on Thursday because it does not vary much from the later numbers, but given this morning’s flip, it is worth noting. As of 8:30am EST, the ratio is +1.26. The USD/CHF ratio has also flipped back to positive territory and is sitting at +1.45. Taken together, the SSI is signaling a possible test of 1.25 in the Euro. Over the past week, total positions in the EUR/USD have increased by 16 percent led primarily by a 70 percent rise in short positions. Long positions have fallen by 17 percent.