Euro Positioning Shifts Suggest Bullish Bias in Near-term
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EURUSD: Retail trader data shows 33.3% of traders are net-long with the ratio of traders short to long at 2.0 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.08475; price has moved 10.4% higher since then. The number of traders net-long is 3.5% higher than yesterday and 8.2% lower from last week, while the number of traders net-short is 5.3% higher 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. 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.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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