EUR/USD: Sentiment Suggests Price May Soon Reverse
52% OF TRADERS ARE NET-LONG
EURUSD: Retail trader data shows 52.0% of traders are net-long with the ratio of traders long to short at 1.09 to 1. The number of traders net-long is 8.2% lower than yesterday and 21.3% lower from last week, while the number of traders net-short is 1.5% lower than yesterday and 22.9% higher from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for the Euro
EURUSD SENTIMENT SUGGESTS 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. 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.