Tanalys

Euro Mixed as Long and Short Orders Fall

Euro Mixed as Long and Short Orders Fall

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EURUSD: Retail trader data shows 31.0% of traders are net-long with the ratio of traders short to long at 2.23 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.06407; price has moved 2.4% higher since then. The number of traders net-long is 9.5% lower than yesterday and 10.6% lower from last week, while the number of traders net-short is 9.7% lower than yesterday and 17.9% 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. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.

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