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Euro Forecast to Continue Higher On Sentiment Shift

Euro Forecast to Continue Higher On Sentiment Shift

Why and how do we use IG Client Sentiment in trading? See our guide.

EURUSD: Retail trader data shows 32.1% of traders are net-long with the ratio of traders short to long at 2.11 to 1. The number of traders net-long is 22.6% lower than yesterday and 53.8% lower from last week, while the number of traders net-short is 21.8% higher than yesterday and 57.2% higher 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bullish contrarian trading bias.

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