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.

From Last Friday’s COT Report, the Commercial Net Position has moved down to the level near Jan 2010, a net short level which is unseen for the past 5 years.

In addition, the Total Open Interest remains on a high level. Together, these indicate that the current uptrend for USDX remains strong.