EUR/USD: Traders Increase Net-Long Positions from Last Week
58.9% OF TRADERS ARE NET-LONG
EURUSD: Retail trader data shows 58.9% of traders are net-long with the ratio of traders long to short at 1.43 to 1. The number of traders net-long is 24.1% higher than yesterday and 37.1% higher from last week, while the number of traders net-short is 9.5% lower than yesterday and 33.5% lower from last week.
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EURUSD SENTIMENT PROMPTS A BEARISH TRADING 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.
--- 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.