EUR/USD: Testing Support As Retail Remains Long
Retail Traders Remain Net-Long Since Jun 14
EURUSD: Retail trader data shows 55.9% of traders are net-long with the ratio of traders long to short at 1.27 to 1. In fact, traders have remained net-long since Jun 14 when EURUSD traded near 1.17453; price has moved 1.2% lower since then. The number of traders net-long is 8.4% higher than yesterday and 10.0% lower from last week, while the number of traders net-short is 1.2% lower than yesterday and 0.4% lower from last week.
EUR/USD Sentiment Unable To Provide Clear Price Direction
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 Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.