EUR/USD: Retail Trader Data shows 55.3% of Traders are Net-Long
EUR/USD: Retail trader data shows 55.3% of traders are net-long with the ratio of traders long to short at 1.24 to 1. In fact, traders have remained net-long since Jul 01 when EUR/USD traded near 1.1368; price has moved 1.5% lower since then. The number of traders net-long is 16.7% lower than yesterday and 35.9% lower from last week, while the number of traders net-short is 23.6% higher than yesterday and 44.4% higher from last week.
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Current Sentiment Suggests Trend may Reverse Higher
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/USD 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 EUR/USD price trend may soon reverse higher despite the fact traders remain net-long.
-Written by Tammy Da Costa, DailyFX Research