EUR/USD: Net-short positions decrease by 9.5% from last week
EUR/USD: Retail trader data shows 67.4% of traders are net-long with the ratio of traders long to short at 2.07 to 1. In fact, traders have remained net-long since Jul 01 when EUR/USD traded near 1.13967; price has moved 2.6% lower since then. The number of traders net-long is 14.8% higher than yesterday and 1.7% lower from last week, while the number of traders net-short is 6.7% lower than yesterday and 9.5% lower from last week.
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Current sentiment suggests 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
-Written by Tammy Da Costa, DailyFX Research
