Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.
EURUSD: Retail trader data shows 24.0% of traders are net-long with the ratio of traders short to long at 3.17 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.07646; price has moved 9.7% higher since then. The percentage of traders net-long is now its lowest since Aug 02 when EURUSD traded near 1.18508. The number of traders net-long is 9.1% lower than yesterday and 20.8% lower from last week, while the number of traders net-short is 19.2% higher than yesterday and 14.6% 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.
See next article in this week’s report: GBPUSD – British Pound Forecast Hinges on the Crowd’s Next Move