EUR/USD: Sentiment Suggests a Mixed Bias
TRADERS REMAINED NET-LONG SINCE FEB 04
EURUSD: Retail trader data shows 66.4% of traders are net-long with the ratio of traders long to short at 1.98 to 1. In fact, traders have remained net-long since Feb 04 when EURUSD traded near 1.14345; price has moved 1.2% lower since then. The number of traders net-long is 3.0% higher than yesterday and 18.7% higher from last week, while the number of traders net-short is 13.2% higher than yesterday and 55.4% higher from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for the Euro
EURUSD PRICE TREND MAY SOON REVERSE DESPITE TRADERS REMAINING NET-LONG
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
Follow Nancy on Twitter @NancyPakbazFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.