NUMBER OF NET-LONG TRADERS INCREASE BY 18% FROM YESTERDAY
EURUSD: Retail trader data shows 65.3% of traders are net-long with the ratio of traders long to short at 1.88 to 1. In fact, traders have remained net-long since Mar 01 when EURUSD traded near 1.13624; price has moved 1.1% lower since then. The number of traders net-long is 18.0% higher than yesterday and 41.8% higher from last week, while the number of traders net-short is 13.3% lower than yesterday and 17.3% lower from last week.
EURUSD SENTIMENT A STRONG 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 Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @ NancyPakbazFX
