Euro Lacks Material Shift in Positioning
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EURUSD: Retail trader data shows 35.5% of traders are net-long with the ratio of traders short to long at 1.82 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.06042; price has moved 3.0% higher since then. The number of traders net-long is 22.8% lower than yesterday and 16.5% higher from last week, while the number of traders net-short is 5.1% higher than yesterday and 1.5% 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 more net-short than yesterday but less 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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