How Institutions Position Themselves In Euro/Usd This Week

After 4 weeks unwinding their long positions, institutions increased their long positions ,
which was shown in the latest COT as of Tuesday, Feb 27, 2018.

The institutions net long Euro positions increased last week by 9,014 contracts to 137,977 contracts.
9,014 long positions were added, and 2,837 short positions were closed as well. Now Longs total 238,287 contracts vs shorts total 100,310 contracts .

70% long exposure vs 30% short exposure, which was #3 week highest percent in long exposure

This week from 2/20, the price moved from 1.2412 high on 2/20 down to 1.2221 low on 2/27, closed at 1.2232

Longs being added and shorts being closed, it indicates institutions are in preparation for price moving up from 1.21-1.22s area,
Euro is currently testing 4H supply zone 1.2320-1.2360, once that breaks, it may challenge 1.25s once more.

Bullish bias remains…

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.