EUR/USD: Traders Remain Net-Long Since 01 July
EUR/USD: Net-Long Positions Increase by 9.2% from Last Week
EUR/USD: Retail trader data shows 71.9% of traders are net-long with the ratio of traders long to short at 2.56 to 1. In fact, traders have remained net-long since Jul 01 when EUR/USD traded near 1.13678; price has moved 2.0% lower since then. The number of traders net-long is 8.7% higher than yesterday and 9.2% higher from last week, while the number of traders net-short is 9.6% lower than yesterday and 15.3% 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. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bearish contrarian 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.