EURUSD Holds at Resistance with Bullish Signal
Net-Long Positions Remain Above 55%
EURUSD: Retail trader data shows 56.1% of traders are net-long with the ratio of traders long to short at 1.28 to 1. In fact, traders have remained net-long since Jun 14 when EURUSD traded near 1.17988; price has moved 1.3% lower since then. The number of traders net-long is 5.4% lower than yesterday and 12.1% lower from last week, while the number of traders net-short is 3.5% lower than yesterday and 0.1% higher from last week.
Euro May Reverse Higher
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Abdullah AlAmoudi, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.