Euro May Rise as Net-Short Positions Increase
EURUSD: Retail trader data shows 32.5% of traders are net-long with the ratio of traders short to long at 2.08 to 1. The number of traders net-long is 3.7% higher than yesterday and 15.1% lower from last week, while the number of traders net-short is 11.7% higher than yesterday and 1.6% 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