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Positions of large speculators according to the COT report as at 5/11/2021

Total net speculator positions for the USD index rose by 500 contracts last week. This change is the result of a 200-contract increase in long positions and a 300-contract decrease in short positions.

The increase in total net speculator positions occurred last week in the euro, the British pound, the New Zealand dollar, and the Canadian dollar.

Declines in total net positions occurred in the Japanese yen, the Swiss franc and the Australian dollar.

Speculators' total net positions for the New Zealand dollar has reached the highest level in 34 weeks. 
 

The positions of speculators in individual currencies

The total net positions of large speculators are shown in Table 1: If the value is positive then the large speculators are net long. If the value is negative, the large speculators are net short.
 

 

5/11/2021

29/10/2021

22/10/2021

15/10/2021

8/10/2021

1/10/2021

USD index

35,000

34,500

36,000

35,100

32,000

26,500

EUR

-6,100

-11,300

-12,100

-18,400

-22,300

900

GBP

15,000

15,000

1,600

-12,000

-20,000

2,000

AUD

-75,500

-75,200

-76,100

-87,600

-90,000

-86,400

NZD

13,900

8,900

6,400

8,700

8,100

10,200

CAD

4,200

3,300

-10,900

-27 900

-26,900

-20,200

CHF

-20,600

-19,400

-17,600

-13,000

-15,700

-11,600

JPY

-107,600

-107,000

-102,700

-76,600

-63,700

-64,800

Table 1: Total net positions of large speculators

 

Notes:

Large speculators are traders who trade large volumes of futures contracts, which, if the set limits are met, must be reported to the Commodity Futures Trading Commission. Typically, this includes traders such as funds or large banks. These traders mostly focus on trading long-term trends and their goal is to make money on speculation with the instrument.

The total net positions of large speculators are the difference between the number of long contracts and the number of short contracts of large speculators. Positive value shows that large speculators are net long. Negative value shows that large speculators are net short. The data is published every Friday and is delayed because it shows the status on Tuesday of the week.

The total net positions of large speculators show the sentiment this group has in the market. A positive value of the total net positions of speculators indicates bullish sentiment, a negative value of total net positions indicates bearish sentiment.

When interpreting charts and values, it is important to follow the overall trend of total net positions. The turning points are also very important, i.e. the moments when the total net positions go from a positive value to a negative one and vice versa. Important are also extreme values of total net positions as they often serve as signals of a trend reversal.

Sentiment according to the reported positions of large players in futures markets is not immediately reflected in the movement of currency pairs. Therefore, information on sentiment is more likely to be used by traders who take longer trades and are willing to hold their positions for several weeks or even months.
 

Detailed analysis of selected currencies

Explanations:
 

Purple line and histogram in the chart window: this is information on the total net position of large speculators. This information shows the strength and sentiment of an ongoing trend.

Green line in the indicator window: these are the bullish positions of large speculators.

Red line in the indicator window: indicates the bearish positions of large speculators.

If there is a green line above the red line in the indicator window, then it means that the overall net positions are positive, i.e. that bullish sentiment prevails. If, on the other hand, the green line is below the red line, then bearish sentiment prevails and the overall net positions of the big speculators are negative.

Information on the positions of so-called hedgers is not shown in the chart, due to the fact that their main goal is not speculation, but hedging. Therefore, this group usually takes the opposite positions than the large speculators. For this reason, the positions of hedgers are inversely correlated with the movement of the price of the underlying asset. However, this inverse correlation shows the ongoing trend less clearly than the position of large speculators.

Charts are made with the use of www.tradingview.com.
 

The euro



Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

5/11/2021 -2,400 5,200 -5,300 -10,500 Weakening bearish
29/10/2021 1,000 800 3,600 2,800 Weakening bearish
22/10/2021 -15,900 6,300 -9,200 -15,500 Weakening bearish
 
COT-22-10-obr-1.png
Figure 1: The euro and COT positions of large speculators on a weekly chart and the EURUSD on D1
 

Total net speculator positions rose by 5,200 contracts last week. This change is due to a decrease in long positions by 5,300 contracts and a decrease in short positions by 10,500 contracts.

The euro continues to move in a downtrend. Last week, the price reached the support level around 1.15.
 

Long-term resistance: 1.1660 - 1.1700
Long-term support: 1.1500 - 1.1520

 

The British pound



Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

5/11/2021 10,300 0 5,300 5,300 Bullish
29/10/2021 -2,500 13,400 2,800 -10,600 Bullish
22/10/2021 -13,900 13,600 2,300 -11,300 Bullish

 

COT-22-10-obr-2.png
Figure 2: The GBP and COT positions of large speculators on a weekly chart and the GBPUSD on D1
 

Last week, the total net positions of speculators remained unchanged. This state of total net positions over the past week is the result of an increase in long positions by 5,300 contracts and a decrease in short positions by 5,300 contracts.

The pound continues to be in a downtrend and weakened sharply last week after the BoE central bank failed to raise interest rates. The pound broke through a support at 1.3570 and approached significant support at 1.3420.
 

Long-term resistance: 1.3600-1.3610
Long-term support: 1.3400-1.3420

 

 

The Australian dollar



Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

5/11/2021 2,900 -300 1,700 2,000 Bearish
29/10/2021 1,500 900 5,900 5,000 Weakening bearish
22/10/2021 -19,400 11,500 400 -11,100 Weakening bearish
Weakening bearish
 
COT-22-10-obr-3.png
Figure 3: The AUD and COT positions of large speculators on a weekly chart and the AUDUSD on D1
 

Last week, the total net positions of speculators fell by 300 contracts. This change is due to the growth in long positions by 1,700 contracts and the growth in short positions by 2,000 contracts.

The Australian dollar weakened last week and reached support at the SMA 100 moving average. The EMA 50 and SMA 100 moving averages have created a bullish signal. A higher high has also formed on the daily chart, which should indicate that the previous downtrend could be over.
 

Long-term resistance: 0.7550-0.7600
Long-term support: 0.7170-0.7180

 

The New Zealand dollar

  

Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

5/11/2021 2,400 5,000 3,000 -2,000 Bullish
29/10/2021 5,300 2,500 3,500 1,000 Bullish
22/10/2021 400 -2,300 500 2,800 Weakening bullish

COT-22-10-obr-4.png
Figure 4: The NZD and the position of large speculators on a weekly chart and the NZDUSD on D1
 

Last week, total net positions rose by 5,000 contracts. The change in total net positions is the result of an increase in long positions by 3,000 contracts and a decrease in short positions by 2,000 contracts. 

The New Zealand dollar weakened last week and reached support at 0.7100. The EMA 50 moving average is above the SMA 100, which is a bullish constellation. 


Resistance: 0.7200-0.7220
Long term support: 0.7060-0.7100

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