Euro Outlook Turns Bearish on Key Sentiment Change
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EURUSD: Retail trader data shows 54.6% of traders are net-long with the ratio of traders long to short at 1.2 to 1. In fact, traders have remained net-long since Apr 03 when EURUSD traded near 1.06707; price has moved 0.2% lower since then. The number of traders net-long is 13.5% lower than yesterday and 17.5% lower from last week, while the number of traders net-short is 22.6% higher than yesterday and 13.9% higher 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse higher despite the fact traders remain net-long.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.