Euro Bias Mixed, Retains Potential for Bearish Turn
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EURUSD: Retail trader data shows 37.6% of traders are net-long with the ratio of traders short to long at 1.66 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.07831; price has moved 8.7% higher since then. The number of traders net-long is 6.7% lower than yesterday and 15.1% lower from last week, while the number of traders net-short is 0.7% lower than yesterday and 10.5% 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. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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