Retail trader data shows 41.8% of traders are net-long
EUR/USD: Retail trader data shows 41.8% of traders are net-long with the ratio of traders short to long at 1.39 to 1. In fact, traders have remained net-short since Jun 20 when EUR/USD traded near 1.12917; price has moved 0.7% higher since then. The number of traders net-long is 2.9% higher than yesterday and 1.5% lower from last week, while the number of traders net-short is 4.4% lower than yesterday and 14.1% higher from last week.
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Current sentiment suggests mixed trading bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/USD prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed EUR/USD trading bias.
-Written by Tammy Da Costa, DailyFX Research