EUR/USD: Prices May Fall As Net-Short Positions Jump 8.4% Overnight
Retail Traders Are Moderately Long As Consolidation Extends
EURUSD: Retail trader data shows 51.7% of traders are net-long with the ratio of traders long to short at 1.07 to 1. The number of traders net-long is 5.9% higher than yesterday and 1.0% lower from last week, while the number of traders net-short is 8.4% higher than yesterday and 6.3% lower from last week.
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EUR/USD Sentiment Unable to Provide Clear 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 less net-long than yesterday but more 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.