Source: FXCM Dealing desk

EURUSD - 70% of retail traders are short EURUSD (long to short ratio is -2.35). Moreover, since last week, retail has been aggressively selling EURUSD (short positions are up by 22.9%). In the past, when retail was short and selling more, the EURUSD has rallied in the following days. The SSI gives us a STRONG SIGNAL TO BUY EURUSD.


GBPUSD - 52% of retail traders are short GBPUSD (long to short ratio is -1.08). However, since last week, retail has been buying the GBPUSD (long positions are up by 7.9%). When retail is short but reduces its exposure, the long term direction remains bullish but the market might have some downside in the short term. The SSI gives us a MEDIUM SIGNAL TO BUY GBPUSD.

USDJPY - 63% of retail traders are long USDJPY (long to short ratio is 1.70). However, since last week, retail has been selling the USDJPY (short positions are up by 1.1%). When retail is long but reduces its exposure, the long term direction remains bearish but the market might have some upside in the short term. The SSI gives us a MEDIUM SIGNAL TO SELL USDJPY.

USDCHF - 75% of retail traders are long USDCHF (long to short ratio is 2.93). However, since last week, retail has been selling the USDCHF (short positions are up by 17.4%). When retail is long but reduces its exposure, the long term direction remains bearish but the market might have some upside in the short term. The SSI gives us a MEDIUM SIGNAL TO SELL USDCHF.

USDCAD - 84% of retail traders are long USDCAD (long to short ratio is 5.08). Moreover, since last week, retail has been aggressively buying USDCAD (long positions are up by 32.4%). In the past, when retail was long and buying more, the USDCAD has sold off in the following days. The SSI gives us a STRONG SIGNAL TO SELL USDCAD.