PRICE MOVED 0.3% LOWER SINCE APRIL 12
EURUSD: Retail trader data shows 51.1% of traders are net-long with the ratio of traders long to short at 1.05 to 1. In fact, traders have remained net-long since Apr 12 when EURUSD traded near 1.12763; price has moved 0.3% lower since then. The number of traders net-long is 7.2% lower than yesterday and 20.3% lower from last week, while the number of traders net-short is 6.8% higher than yesterday and 10.6% higher from last week.
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EURUSD SENTIMENT WARN THAT PRICE TREND MAY SOON REVERSE
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX
