Until Tuesday, institutions continued to cut their Euro bullish bets for 7 weeks in a row , which was shown in the latest COT as of Tuesday, June 5, 2018.
The institutions net long Euro positions decreased last week by 3,802 contracts to 89,235 contracts
8,877 long positions were added, and 12,779 short positions were added as well . Now Longs total 239,904 contracts vs shorts total 150,669 contracts .
61% long exposure vs 39% short exposure, which 2% decreased in longs and 2% increased in shorts from previous week
This week Euro started at 1.1539 on 5/30, hit low at 1.1518 support , then bounced up to 1.1745 high, closed at 1.1716 on 6/5/2018
We see after COT report, Euro continued to rally up to 1.1840 on 6/7/2018
Despite the bounce in the EUR this week, Institutions continued to cut their net long position , so this looks bearish
Longs being added indicates they might think the temporary bottom at 1.15 ranges; More Shorts being added, as they may prepare for more lows to come or hedge some their longs ;
This could either way from here.We may not have seen the low in Euro yet
Long Term Less Bullish, Short Term Bearish, But We Are Waiting For More Confirmations
Please note institutions take weeks and months to build a position in the currency market. For Euro, they have built their net long positions since 5/9/2017.
Therefore, the bullish sentiment is more for long term outlook, not intended for short term trading.
