Euro Mixed as Bulls Pull Back
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EURUSD: Retail trader data shows 30.8% of traders are net-long with the ratio of traders short to long at 2.25 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.07291; price has moved 1.6% higher since then. The number of traders net-long is 1.1% lower than yesterday and 24.5% lower from last week, while the number of traders net-short is 7.8% lower than yesterday and 21.8% 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 trading bias.
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