IG Client Sentiment: Bearish Signal for EUR/USD
EURUSD: Retail trader data show 31.0% of traders are net long, with the ratio of traders short to long at 2.23 to 1. In fact, traders have remained net short since April 18, when EURUSD traded near 1.06407; the price has moved 2.4% higher since then. The number of traders net-long is 9.5% lower than yesterday and 10.6% lower from last week, while the number of traders net-short is 9.7% lower than yesterday and 17.9% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net short suggests EURUSD prices may continue to rise. Positioning is less net short than yesterday but more net short from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.
--- Written by Martin Essex, Analyst and Editor
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