FX Traders Buy, but we Prefer to Sell EUR/USD
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EURUSD: Retail trader data shows 60.3% of traders are net-long with the ratio of traders long to short at 1.52 to 1. In fact, traders have remained net-long since Apr 03 when EURUSD traded near 1.06665; price has moved 0.7% lower since then. The number of traders net-long is 4.6% higher than yesterday and 26.8% higher from last week, while the number of traders net-short is 11.9% higher than yesterday and 11.3% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.
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