Sentiment Gives EURUSD Mixed Signal
Traders Net-Long Up By 22.8%
EURUSD: Retail trader data shows 56.2% of traders are net-long with the ratio of traders long to short at 1.29 to 1. In fact, traders have remained net-long since Apr 30 when EURUSD traded near 1.21686; price has moved 3.9% lower since then. The number of traders net-long is 22.8% higher than yesterday and 3.4% higher from last week, while the number of traders net-short is 0.1% higher than yesterday and 8.6% higher from last week.
EURUSD Price Unclear Based on Sentiment
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.
--- Written by Abdullah AlAmoudi, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.