Nearly three out of four traders short EUR/USD
Midway through the trading week, we update Client Sentiment levels - percentage of tastyfx clients with long or short positions - for major forex pairs like EUR/USD, USD/JPY, and more. Find out what traders are thinking this week.
Forex sentiment update
EUR/USD, GBP/USD and USD/CHF have all experienced yearlong price extremes in the past week, and trader sentiment reflects an expectation of mean reversion.
Check out more Client Sentiment with an tastyfx demo account
How client sentiment works
Client Sentiment shows the percentage of tastyfx client accounts with open positions that are currently long or short. If the majority of client accounts with open positions are long a given market, then they expect the price to rise; if the majority is short, then they expect it to fall. (Values taken using tastyfx's Client Sentiment measure as of the previous day's close.)
Trend followers might go with sentiment, while contrarians would tend to go against the trend. For example, a 65% long measure in EUR/USD could reflect a buying opportunity for trend followers or a selling opportunity for contrarians.
EUR/USD sentiment - 74% short
Last week's sentiment: 71% short
This week's price action in euro-dollar has seen the pair break through 1.1200 for the first time in over a year; three percent more traders are taking short positions as a result.
GBP/USD sentiment - 59% short
Last week's sentiment: 69% short
GBP/USD has come off of its yearlong high this week, and more traders believe the pair can return higher - sentiment for the pair moving 10% towards the British pound.
USD/JPY sentiment - 52% short
Last week's sentiment: 58% short
USD/JPY has spent the past week around 139.00. Down off recent highs, but still far from 2023 lows - traders are unsure about the yen's future at 52% short.
USD/CHF sentiment - 89% long
Last week's sentiment: 90% long
Traders remain overwhelmingly long USD against the Swiss franc. Long positions have exhibited patience as the pair has continued lower over the past week - trading below 0.8600 for the first time since 2015.
AUD/USD sentiment - 54% long
Last week's sentiment: 58% long
Australian dollar sentiment continues to fall - getting closer to 50/50. Traders are likely to stay split as AUD/USD continues to trade within the range of 0.6900 and 0.6600.
USD/CAD sentiment - 65% long
Last week's sentiment: 65% long
No change in Canadian dollar sentiment this week as traders weigh less-than-expected inflation data from both countries.
How to trade client sentiment
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
