Over 57% of Retail Traders are Net-Long Despite Recent Price Movement
EURUSD: Retail trader data shows 57.5% of traders are net-long with the ratio of traders long to short at 1.35 to 1. In fact, traders have remained net-long since Nov 23 when EURUSD traded near 1.14026; price has moved 0.5% lower since then. The number of traders net-long is 0.2% lower than yesterday and 17.1% lower from last week, while the number of traders net-short is 11.4% lower than yesterday and 8.0% lower from last week.
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EUR/USD Sentiment Is Unable to Provide a Clear Direction
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.
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--- Written by Jake Schoenleb, DailyFX Research