EUR/USD: Short Positions Increase 30% This Week
Net-Short Positions Climb to the highest level in 2 months
EURUSD: Retail trader data shows 47.6% of traders are net-long with the ratio of traders short to long at 1.1 to 1. The percentage of traders net-long is now its lowest since Jul 30 when EURUSD traded near 1.17074. The number of traders net-long is 10.8% lower than yesterday and 19.1% lower from last week, while the number of traders net-short is 19.7% higher than yesterday and 30.2% higher from last week.
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EUR/USD Sentiment Induces a 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.