EUR/USD Analysis

Current Position:

  • 30.60% of traders are net-long (buying)
  • 69.40% of traders are net-short (selling)
  • The ratio of short to long positions is 2.27 to 1

Changes in Long Positions:

  • Increased by 20.19% since yesterday
  • Increased by 44.60% since last week

Changes in Short Positions:

  • Decreased by 5.87% since yesterday
  • Decreased by 3.33% since last week

Market Interpretation:

  • We generally take a contrarian view to crowd sentiment.
  • The current net-short position suggests EUR/USD prices may continue to rise.
  • However, traders are becoming less net-short compared to yesterday and last week.
  • These recent changes in sentiment suggest caution in predicting further price increases.

GBP/USD Analysis

Current Position:

  • 25.81% of traders are net-long (buying more than selling)
  • The ratio of short to long positions is 2.88 to 1

Recent Changes:

  • Net-long traders:
    • Increased by 3.41% since yesterday
    • Decreased by 6.04% since last week
  • Net-short traders:
    • Decreased by 3.21% since yesterday
    • Increased by 13.11% since last week

Analysis: We usually interpret crowd sentiment in a contrarian manner. Since traders are predominantly short, this suggests GBP/USD prices might rise.

However, the sentiment is mixed:

  • Compared to yesterday: Slightly less bearish (fewer short positions)
  • Compared to last week: More bearish (more short positions)

Conclusion: Due to the conflicting short-term and medium-term trends in trader sentiment, our trading bias for GBP/USD is mixed

Source https://www.dailyfx.com/analysis/eur-usd-and-gbp-usd-latest-sentiment-analysis-and-positioning-20240829.html



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