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Thread: Trader Sentiment and Positioning

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#423 (permalink)

11-02-2008, 07:39 PM

Jeremy Demunter

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Posts: n/a

EUR

Hi everyone,

I've got some COT data on the euro, from 2000 to now. The COT Index using data from 2000 to now is showing lowest reading ever, a bearish extreme. Speculators are extremly short and Commercials are extremly long. So I'm expecting a turn soon on EUR/USD. There's a chance that we could go lower, because the % long speculators (=non commercial) ratio isn't below 10 yet (but it is at a low which hasn't been reached since 2000), nonetheless a rally is close by. Using the 52 weeks index we seem a simular picture.

Greetings,
Jeremy

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