Euro Sentiment Points to a Potential Crowd Turning Point
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EURUSD – Traders remain net-short the Euro as the ratio of long to short positions in the EURUSD stands at -1.70; 37% of traders are long. Positions remain roughly unchanged from last week as relatively few seem willing to buy into recent declines, and indeed the average crowd long position remains heavily underwater.
It’s possible we are near an important capitulation point as fewer traders are willing to buy into sharp decline. Yet such extremes are only clear in hindsight, and we have little choice but to call for a continuation of recent declines until we see a sustained reversal in sentiment.
See next currency section: GBPUSD - British Pound Targets Fresh Lows versus US Dollar
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