63% of Retail Traders are Net-Long
EURUSD: Retail trader data shows 63.1% of traders are net-long with the ratio of traders long to short at 1.71 to 1. In fact, traders have remained net-long since Oct 01 when EURUSD traded near 1.16344; price has moved 2.1% lower since then. The number of traders net-long is 13.5% higher than yesterday and 0.2% higher from last week, while the number of traders net-short is 4.4% higher than yesterday and 1.9% higher from last week.
To gain more insight to how we use sentiment to power our trading, join us for our weekly Trading Sentiment webinar.
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 more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.
Having trouble developing your strategy? Here’s the #1 mistake that traders make.
--- Written by Jake Schoenleb, DailyFX Research