EUR/USD: Net-Long Positions Continue to Rise Suggesting Trend may Reverse Shortly
EUR/USD: Net-Long Positions Increase by 23.3% from Last Week
EUR/USD: Retail trader data shows 65.3% of traders are net-long with the ratio of traders long to short at 1.88 to 1. In fact, traders have remained net-long since Jul 01 when EUR/USD traded near 1.129; price has moved 0.1% lower since then. The number of traders net-long is 2.8% lower than yesterday and 23.3% higher from last week, while the number of traders net-short is 0.5% lower than yesterday and 18.0% lower from last week.
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Current Sentiment Suggests Further Bearish Trading Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/USD prices may continue to fall. Positioning is less net-long than yesterday but more net-long 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.