EUR/USD Hits 2-week Lows, Outlook Bearish
Net-Long Reaches its Highest since Dec12
EURUSD: Retail trader data shows 63.1% of traders are net-long with the ratio of traders long to short at 1.71 to 1. The percentage of traders net-long is now its highest since Dec 12 when EURUSD traded near 1.13724. The number of traders net-long is 47.7% higher than yesterday and 18.4% higher from last week, while the number of traders net-short is 32.2% lower than yesterday and 19.6% lower from last week.
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EURUSD 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 Fan Xu, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.