Euro Forecast Remains Bearish According to Trader Sentiment
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EURUSD: Retail trader data shows 61.7% of traders are net-long with the ratio of traders long to short at 1.61 to 1. In fact, traders have remained net-long since Apr 03 when EURUSD traded near 1.06665; price has remained unchanged since then. The number of traders net-long is 3.4% higher than yesterday and 9.2% higher from last week, while the number of traders net-short is 4.1% lower than yesterday and 12.3% 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. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bearish contrarian trading bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.