Euro May Make a Bullish Run Based on Sentiment
EURUSD: Retail trader data shows 38.7% of traders are net-long with the ratio of traders short to long at 1.58 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.07367; price has moved 10.0% higher since then. The number of traders net-long is 8.2% higher than yesterday and 7.9% lower from last week, while the number of traders net-short is 12.1% higher than yesterday and 10.3% 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 Dylan Jusino, DailyFX Research
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