IG Client Sentiment data shows that traders remain steadily net-short the Euro versus the US Dollar, and indeed a recent build in short positions further cements our call for further EURUSD gains.
Euro Sentiment Chart
EURUSD: Retail trader data shows 34.8% of traders are net-long with the ratio of traders short to long at 1.87 to 1. The number of traders net-long is 9.9% lower than yesterday and 15.0% lower from last week, while the number of traders net-short is 18.2% higher than yesterday and 23.1% 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 David Rodriguez, Senior Strategist for DailyFX.com
