Euro Forecast to Gain Further Until this Changes
EURUSD: Retail trader data shows 24.6% of traders are net-long with the ratio of traders short to long at 3.06 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.06665; price has moved 9.2% higher since then. The number of traders net-long is 12.6% higher than yesterday and 0.3% lower from last week, while the number of traders net-short is 3.3% higher than yesterday and 7.9% 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 at Risk of Turnaround versus US Dollar