EUR/USD: Traders Remain Net-Long Suggesting Prices May Fall
EUR/USD: Retail Trader Data shows 74.3% of Traders are Net-Long
EUR/USD: Retail trader data shows 74.3% of traders are net-long with the ratio of traders long to short at 2.89 to 1. In fact, traders have remained net-long since Jul 01 when EUR/USD traded near 1.13685; price has moved 1.9% lower since then. The number of traders net-long is 0.8% higher than yesterday and 0.4% lower from last week, while the number of traders net-short is 1.9% lower than yesterday and 0.7% higher from last week.
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Current Sentiment Suggests Stronger 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.