EUR/USD: 63% of Retail Traders are Long, Despite YTD lows
The Net-Long ratio maintains stability around 1.7
EURUSD: Retail trader data shows 63.0% of traders are net-long with the ratio of traders long to short at 1.7 to 1. In fact, traders have remained net-long since Oct 01 when EURUSD traded near 1.17485; price has moved 4.1% lower since then. The number of traders net-long is 2.9% lower than yesterday and 1.6% lower from last week, while the number of traders net-short is 2.1% higher than yesterday and 1.2% lower from last week.
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EUR/USD Sentiment Suggest that Prices May Rise
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.
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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.