Short Euro-Traders May be Clearing the Way for Bulls
EURUSD: Retail trader data shows 43.5% of traders are net-long with the ratio of traders short to long at 1.3 to 1. The number of traders net-long is 13.1% lower than yesterday and 0.1% lower from last week, while the number of traders net-short is 9.6% higher than yesterday and 2.0% 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 Dylan Jusino, DailyFX Research