NUMBER OF NET-LONG TRADERS INCREASE BY 18% FROM YESTERDAY
EURUSD: 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 Mar 01 when EURUSD traded near 1.13624; price has moved 1.1% lower since then. The number of traders net-long is 18.0% higher than yesterday and 41.8% higher from last week, while the number of traders net-short is 13.3% lower than yesterday and 17.3% lower from last week.
EURUSD SENTIMENT A STRONG BEARISH BIAS
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD 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 EURUSD-bearish contrarian trading bias.
To gain more insight in how we use sentiment to supplement a strategy, join us for one of our weekly webinars on how to “Identify Trends with Sentiment”:
(click on one of the above times to enroll)
— Written by Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX