Euro Net-Long Positions Up by 7.5% Since Last Week
EURUSD: Retail trader data shows 43.0% of traders are net-long with the ratio of traders short to long at 1.33 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.05838; price has moved 16.2% higher since then. The number of traders net-long is 7.7% lower than yesterday and 7.5% higher from last week, while the number of traders net-short is 5.0% lower than yesterday and 17.3% 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 more net-short than yesterday but less 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