Euro Forecast to Remain Strong versus the US Dollar
EURUSD: Retail trader data shows 29.2% of traders are net-long with the ratio of traders short to long at 2.43 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.06045; price has moved 6.1% higher since then. The number of traders net-long is 20.8% higher than yesterday and 0.4% higher from last week, while the number of traders net-short is 1.7% lower than yesterday and 1.4% 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.
See next article in this week’s report: GBPUSD - British Pound Forecast May Change on Trader Sentiment
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