EUR/USD: Weekly Short Positions Drop 13%
Net-Long Positions Reach 2-Month Highs
EURUSD: Retail trader data shows 61.3% of traders are net-long with the ratio of traders long to short at 1.58 to 1. In fact, traders have remained net-long since Oct 01 when EURUSD traded near 1.16024; price has moved 2.0% lower since then. The number of traders net-long is 2.5% lower than yesterday and 6.6% higher from last week, while the number of traders net-short is 0.7% lower than yesterday and 13.0% lower from last week.
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Mixed Bias Lurks Over EUR/USD
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD 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.