Euro Outlook Turns Bullish on Key Sentiment Change
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EURUSD: Retail trader data shows 32.7% of traders are net-long with the ratio of traders short to long at 2.06 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.07291; price has moved 1.3% higher since then. The number of traders net-long is 4.9% higher than yesterday and 35.1% lower from last week, while the number of traders net-short is 8.2% lower than yesterday and 15.6% 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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.