Recent Developments in Trader Sentiment May Push Euro Lower
EURUSD: Retail trader data shows 38.4% of traders are net-long with the ratio of traders short to long at 1.61 to 1. The number of traders net-long is 30.0% higher than yesterday and 12.2% higher from last week, while the number of traders net-short is 4.3% higher than yesterday and 15.0% 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