EUR/USD: Weekly Short Positions Slump 21% Leading to a Bearish Bias
60% of Retail Traders are Net-Long
EURUSD: Retail trader data shows 59.8% of traders are net-long with the ratio of traders long to short at 1.49 to 1. The number of traders net-long is 11.4% higher than yesterday and 31.8% higher from last week, while the number of traders net-short is 11.2% lower than yesterday and 21.7% lower from last week.
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EUR/USD Sentiment Suggests a Bearish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bearish 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.