EUR/USD: Traders Increase Net-Short Position
TRADERS NET-SHORT INCREASE FROM LAST WEEK
EURUSD: Retail trader data shows 41.8% of traders are net-long with the ratio of traders short to long at 1.39 to 1. The percentage of traders net-long is now its lowest since Dec 31 when EURUSD traded near 1.1464. The number of traders net-long is 2.5% lower than yesterday and 23.6% lower from last week, while the number of traders net-short is 9.5% higher than yesterday and 42.1% higher from last week.
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EURUSD SENTIMENT SUGGESTS A BULLISH BIAS
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EURUSD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bullish contrarian trading bias.
--- 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.