NET-SHORT POSITIONS INCREASE
EURUSD: Retail dealer knowledge reveals 44.four% of merchants are net-long with the ratio of merchants quick to lengthy at 1.25 to 1. The variety of merchants net-long is 1.2% decrease than yesterday and 5.2% greater from final week, whereas the variety of merchants net-short is 27.four% greater than yesterday and eight.6% greater from final week.
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EURUSD NOW SUGGESTS A STRONG BULLISH BIAS
We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-short suggests EURUSD costs could proceed to rise. Merchants are additional net-short than yesterday and final week, and the mixture of present sentiment and up to date modifications provides us a stronger EURUSD-bullish contrarian buying and selling bias.
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— Written by Nancy Pakbaz, CFA, DailyFX Analysis