Euro Selloff Sets Opportunity for Bullish Run
Why and how do we use IG Client Sentiment in trading? See our guide.
EURUSD: Retail trader data shows 26.0% of traders are net-long with the ratio of traders short to long at 2.85 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.06101; price has moved 5.0% higher since then. The number of traders net-long is 8.7% lower than yesterday and 36.9% lower from last week, while the number of traders net-short is 2.7% higher than yesterday and 29.7% 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bullish contrarian trading bias..
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.