EURUSD: Retail trader data shows 36.6% of traders are net-long with the ratio of traders short to long at 1.73 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.056; price has moved 17.5% higher since then. The number of traders net-long is 5.3% higher than yesterday and 15.1% lower from last week, while the number of traders net-short is 0.1% higher than yesterday and 7.3% 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. 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
