Our Euro Forecast may Shift as Traders Show Change of Heart
EURUSD: Retail trader data shows 30.2% of traders are net-long with the ratio of traders short to long at 2.31 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.05975; price has moved 5.7% higher since then. The number of traders net-long is 9.6% higher than yesterday and 2.1% higher from last week, while the number of traders net-short is 3.9% higher than yesterday and 5.3% lower 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse lower despite the fact traders remain net-short.
See next article in this week’s report: GBPUSD - British Pound Forecast to Continue Lower on Key Shift
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