Euro Traders Remain Long as Pair tests Key Low
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EURUSD: Retail trader data shows 57.8% of traders are net-long with the ratio of traders long to short at 1.37 to 1. In fact, traders have remained net-long since May 15 when EURUSD traded near 1.12056; price has moved 0.2% lower since then. The number of traders net-long is 14.4% lower than yesterday and 8.0% lower from last week, while the number of traders net-short is 0.8% lower than yesterday and 7.7% lower from last week.
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.
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