Euro Sentiment Shifts as Traders Sell Positions
EURUSD: Retail trader data shows 31.0% of traders are net-long with the ratio of traders short to long at 2.23 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.05835; price has moved 17.4% higher since then. The number of traders net-long is 6.6% higher than yesterday and 21.6% lower from last week, while the number of traders net-short is 3.1% lower than yesterday and 3.3% 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. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.
--- Written by Dylan Jusino, DailyFX Research
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