Traders Remain Heavily Short Euro - We Forecast Further Gains
Why and how do we use IG Client Sentiment in trading? See our guide.
EURUSD: Retail trader data shows 27.7% of traders are net-long with the ratio of traders short to long at 2.61 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.06163; price has moved 5.3% higher since then. The number of traders net-long is 1.1% lower than yesterday and 5.3% higher from last week, while the number of traders net-short is 4.5% higher than yesterday and 4.1% 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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.