EUR/USD: Prices May Fall as Traders Increase Net-Long Positions
Net-Long Postions Climb 15.2% This Week
EURUSD: Retail trader data shows 61.5% of traders are net-long with the ratio of traders long to short at 1.59 to 1. The number of traders net-long is 4.4% higher than yesterday and 15.2% higher from last week, while the number of traders net-short is 3.7% higher than yesterday and 9.3% lower from last week.
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EUR/USD Sentiment Signals a Bearish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bearish 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.