EUR/USD: Prices May Rise As Weekly Long Positions Fall 19%
Net-Short Positions Decreased 15.5% This Week
EURUSD: Retail trader data shows 44.1% of traders are net-long with the ratio of traders short to long at 1.27 to 1. In fact, traders have remained net-short since Aug 21 when EURUSD traded near 1.14371; price has moved 1.3% higher since then. The number of traders net-long is 4.0% lower than yesterday and 19.4% lower from last week, while the number of traders net-short is 4.2% higher than yesterday and 15.5% lower from last week.
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EUR/USD Sentiment Sparks a 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.
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--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.