Speculative Dollar Longs Increase

06/22/2010 12:01 am EST

Focus: FOREX

Jamie Saettele

Senior Technical Strategist, FXCM

Speculative USD longs have ticked up after pulling back for several months. As such, the trend towards USD buying may be back underway.

Latest CFTC Release dated June 15, 2010:

The COT Index is the percentile of the difference between net speculative positioning and net commercial positioning measured over a specific number of weeks (13). A reading close to zero is bearish if the currency in question has reversed from a uptrend and is bullish if the currency has been declining for a significant amount of time. A reading close to 100 is bullish if the currency in question has reversed from a downtrend and is bearish if the currency has been rallying for a significant amount of time.

Readings of 95 and higher as well as five and lower are in bold-faced red type to indicate potential market extremes. For example, an increasing index is bullish until the index is extreme (near 100), at which time the risk of a reversal or pause in the trend increases.

US Dollar


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Speculative USD longs have ticked up after pulling back for several months. As such, the trend towards USD buying may be back underway.

By Jamie Saettele of DailyFX.com

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