Euro to Reverse and Trend Lower
EURUSD: Retail trader data shows 40.6% of traders are net-long with the ratio of traders short to long at 1.46 to 1. The number of traders net-long is 14.3% higher than yesterday and 1.9% higher from last week, while the number of traders net-short is 5.7% higher than yesterday and 7.2% 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.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.