Bearish Reversal in Play for the Euro
EURUSD: Retail trader data shows 31.5% of traders are net-long with the ratio of traders short to long at 2.18 to 1. The percentage of traders net-long is now its highest since Dec 25 when EURUSD traded near 1.18706. The number of traders net-long is 28.1% higher than yesterday and 67.7% higher from last week, while the number of traders net-short is 4.0% lower than yesterday and 4.5% 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. 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
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