EUR/USD: Weekly Long Positions Slump 33% Leading to a Bullish Bias
The Net-Long Position is 33% lower than last week
EURUSD: Retail trader data shows 48.1% of traders are net-long with the ratio of traders short to long at 1.08 to 1. The number of traders net-long is 12.3% lower than yesterday and 32.7% lower from last week, while the number of traders net-short is 4.5% lower than yesterday and 24.2% higher from last week.
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EUR/USD Sentiment Suggests 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 Fan Xu, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.