Euro Still Poised to go Higher
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EURUSD: Retail trader data shows 24.7% of traders are net-long with the ratio of traders short to long at 3.04 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.06101; price has moved 4.8% higher since then. The number of traders net-long is 17.3% lower than yesterday and 36.6% lower from last week, while the number of traders net-short is 3.6% lower than yesterday and 32.8% 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. 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.
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