EUR/USD: Prices May Rise As Net-Short Positions Jump 15.9% Overnight
Net-Long Positions Dwindle To Lowest Level Since April
EURUSD: Retail trader data shows 46.0% of traders are net-long with the ratio of traders short to long at 1.17 to 1. The number of traders net-long is 1.5% higher than yesterday and 13.0% lower from last week, while the number of traders net-short is 15.9% higher than yesterday and 15.7% higher from last week.
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EUR/USD Sentiment Prompts Strong Bullish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EURUSD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bullish contrarian trading bias.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.