salsapete

EURUSD - COT at extremes

FX:EURUSD   Euro / U.S. Dollar
The Euro has seen price supported at 1.07/.08 in early 2020 and subsequent rally towards 1.20 .

Price has consolidated over the last few weeks and is supported by the 20 MAV.

Technically this recent consolidation has seen a divergence of price and momentum and a decline in volume.

And price may want to retest near term support.

What is the big money doing ?

Both asset managers and leveraged funds are net long . They are bullish.

Are they at extreme sentiment ?

The leveraged funds are taking significant net long positions , but not at an extreme as yet.

The asset managers , who have been net long since 2016 ,are at an extreme long position ( over last decade) .

The is reflected in the dealers ( who take the opposite position ) being net short some 95% .

This sets up a fundamental dilemma, in who else will buy ?

Keep an eye on the COT - particularly I would watch for a change in sentiment ( fall in longs and rise in shorts ) from the smart money for a hint of coming trend correction.






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