Large Speculators are Too Short US Dollars

The latest CFTC was published on September 22, 2009.

The COT index is measured over a few weeks (52 or 13) as a percentage difference between net estimates and net trading positions. A value of approximately 0 indicates bottoming and a value of approximately 100 is forming. Readings refer to actual currencies, not currency pairs. For example, if it reads 100 Canadian dollars, it shows that the Canadian dollar is up (USDCAD is at the bottom).

95 and above and 5 and below Bright red font reading shows high market potential. For example, the index rises to the extreme (close to 100), increasing the risk of reversal or extinction.

American dollar

Euro

british pound

Australian dollar

New Zealand dollar

japanese yen

Canadian dollar

Swiss franc

Jamie Satell publishes daily morning technical analysis, COT analysis (Monday), Monday, Wednesday and Friday cross technical analysis (euro and yen crosses) and daily trading strategies on market performance. He is an emotional writer on the forex market. Follow his daily market commentary on the DailyFX Forex Stream.

Written by Antonio Susa