The last COT Report for EURO FX showed that there is high open interest and extreme levels of Commercials and Non-Commercials.
Weekly Chart of EURUSD with COT Analysis
3 observations can be made from the chart.
1. Extreme Bullish Sentiments of the Commercials
The recent levels of the Commercials is on a record Bullishness level, unseen for the past 7 years.
2. Extreme Bearish Sentiments of the Non Commercials
Likewise, the recent levels of the Non-Commercials is on a record Bearish level, unseen for the past 7 years.
3. Rising Total Open Interest
The rising total open interest means that there were new orders for EURO-FX, thus implying increased market interest on this futures contracts.
What does all this mean?
The high open interest with extreme levels of sentiments usually precedes a possible Big move or a start of a trend reversal. As seen from the chart above, it could be a mean possible halt of the current down trend move, which could mean that EURUSD may have a bullish reversal and moving uptrend again.
