EURUSD: Unlikely to Remain Above 1.170 with Bearish Bias
58% of Euro Traders Are Net-Long
EURUSD: Retail trader data shows 58.4% of traders are net-long with the ratio of traders long to short at 1.4 to 1. In fact, traders have remained net-long since Apr 30 when EURUSD traded near 1.21294; price has moved 3.5% lower since then. The number of traders net-long is 0.1% higher than yesterday and 9.8% higher from last week, while the number of traders net-short is 16.7% lower than yesterday and 14.5% lower from last week.
EUR Shifts to Bearish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bearish contrarian trading bias.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.