By Daniel M.

January 5, 2025   •   Fact checked by Dumb Little Man

EUR/USD Sentiment Shift: Investors Lean Towards Short Positions

Traders Increase Net-Short Positions by 13.36% Over the Week

Source: DailyFX

Retail trader data indicates that 48.57% of traders are net-long, with a short-to-long ratio at 1.06 to 1. Notably, a net-short sentiment has prevailed since March 21, when EUR/USD was around 1.09, witnessing a 0.27% decline since.

Current figures show a 19.55% decrease in net-long traders from yesterday and 15.37% from last week. Conversely, net-short traders have risen by 18.69% since yesterday and 13.36% over the past week.

Adopting a contrarian perspective to crowd sentiment often, the prevailing net-short stance hints at a potential uptrend for EUR/USD prices.

Since March 21, 2024, traders have shifted to a net-short position in EUR/USD for the first time, when it was trading near 1.09. The increase in net-short positions both from yesterday and last week, combined with the current sentiment, strengthens our bullish outlook for EUR/USD, suggesting a contrarian bias towards an upward movement.

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Daniel M.

Daniel Moore is a seasoned trading analyst with over 20 years of experience navigating the ever-evolving financial landscape. Renowned for his unconventional yet effective approach, Daniel utilizes a blend of technical and fundamental analysis to identify hidden gems and craft winning trade strategies. He is a master at demystifying complex market data and translating it into actionable insights for traders of all experienceย levels.

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