EURUSD: Traders Increase Their Net-Short Positions
64.3% OF TRADERS ARE NET-LONG
EURUSD: Retail trader data shows 64.3% of traders are net-long with the ratio of traders long to short at 1.8 to 1. In fact, traders have remained net-long since Mar 26 when EURUSD traded near 1.1315; price has moved 0.4% lower since then. The number of traders net-long is 9.4% lower than yesterday and 13.5% lower from last week, while the number of traders net-short is 12.0% lower than yesterday and 13.5% higher from last week.
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EURUSD 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.