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.
To gain more insight to how we use sentiment to power our trading, join us for our weekly Trading Sentiment webinar.
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.
Having trouble developing your strategy? Here’s the #1 mistake that traders make.
--- Written by Fan Xu, DailyFX Research
