Euro to go Higher on Bearish Sentiment
EURUSD: Retail trader data shows 40.5% of traders are net-long with the ratio of traders short to long at 1.47 to 1. The number of traders net-long is 4.2% lower than yesterday and 4.5% lower from last week, while the number of traders net-short is 9.3% higher than yesterday and 2.8% 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. 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