EURUSD: Sentiment Signals Prices May Continue to Fall
NET-LONG POSITIONS DECREASE BY 28.8% FROM LAST WEEK
EURUSD: Retail trader data shows 52.6% of traders are net-long with the ratio of traders long to short at 1.11 to 1. The number of traders net-long is 1.5% higher than yesterday and 28.8% lower from last week, while the number of traders net-short is 3.6% lower than yesterday and 22.4% higher from last week.
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EURUSD SENTIMENT CONTINUES TO SUGGEST 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.