EUR/USD: Traders Remain Net-Long Despite a Mixed Bias
RETAIL TRADERS REMAIN NET-LONG
EURUSD: Retail trader data shows 58.1% of traders are net-long with the ratio of traders long to short at 1.39 to 1. In fact, traders have remained net-long since Nov 23 when EURUSD traded near 1.1388; price has moved 0.2% lower since then. The number of traders net-long is 4.5% higher than yesterday and 10.1% lower from last week, while the number of traders net-short is 12.7% lower than yesterday and 8.7% lower from last week.
To gain more insight to how we use sentiment to power our trading, join us for our weekly Trading Sentiment webinar.
EUR/USD POTENTIAL DECREASE IN PRICES GIVES A MIXED BIAS
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 Nancy Pakbaz, CFA, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.