The COT Report shows the long and short positions of the major institutions - which currencies they are the most bullish on and which currencies they are the most bearish on. This information is very useful for swing traders who hold positions for more than a day.
The currency with the strongest bullish bias would be the USD, with Institutions adding more long contracts and at the same time also reducing the amount of short contracts that they were holding onto.
The currency with the strongest bearish bias would be the NZD, AUD and following behind the JPY. Institutions are currently holding more shorts and also adding alot more short positions.
The best plays this week would be to:
1) Long USD/JPY
2) Short AUD/USD and NZD/USD
The material has been provided by InstaForex Company - www.instaforex.com