EUR/USD: Traders Hope for a Bounce Despite 2018 Lows
Long & Short Positions Decrease This Week
EURUSD: Retail trader data shows 60.3% of traders are net-long with the ratio of traders long to short at 1.52 to 1. In fact, traders have remained net-long since Aug 01 when EURUSD traded near 1.16629; price has moved 2.1% lower since then. The number of traders net-long is 0.1% higher than yesterday and 9.8% lower from last week, while the number of traders net-short is 2.8% higher than yesterday and 5.1% lower from last week.
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EUR/USD Sentiment Induces a Bullish Bias
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 Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.