EUR/USD: 53.8% of Traders Are Net-Long
TRADERS CONTINUE TO HOLD NET-LONG POSITIONS
EURUSD: Retail trader data shows 53.8% of traders are net-long with the ratio of traders long to short at 1.16 to 1. In fact, traders have remained net-long since Jan 10 when EURUSD traded near 1.1554; price has moved 1.0% lower since then. The number of traders net-long is 0.5% higher than yesterday and 18.9% lower from last week, while the number of traders net-short is 8.9% higher than yesterday and 8.5% higher from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for the Euro
EURUSD PRICE TREND MAY SOON REVERSE
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse higher despite the fact traders remain net-long.
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--- Written by Nancy Pakbaz, CFA, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.