DailyFX.com -
EURUSD: Retail trader data shows 41.3% of traders are net-long with the ratio of traders short to long at 1.42 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.0541; price has moved 16.9% higher since then. The number of traders net-long is 8.3% higher than yesterday and 10.3% higher from last week, while the number of traders net-short is 5.9% higher than yesterday and 2.3% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EURUSD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse lower despite the fact traders remain net-short.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.