75% of traders long EUR/USD at 1.0500
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
Strength in US dollar continues as reflected by price extremes across multiple pairs. Today, USD hit 6-month highs against JPY, GBP, EUR, CHF and AUD. Client sentiment indicates a contrarian stance, with the majority of traders anticipating mean reversion.
USD will be tested at the end of this week as GDP growth and Core PCE arrive Thursday and Friday morning, respectively.
EUR/USD sentiment - 75% long
Three out of four traders are now long EUR/USD after briefly dropping below 1.0500. Prices today mark the lowest since the beginning of January.
GBP/USD sentiment - 73% long
Last week's sentiment: 70% long
A 6-month low in GBP/USD caused even more traders to hold long positions in the pair. GBP/USD dropped under 1.2200 and has closed lower every day in the past week.
USD/JPY sentiment - 79% short
Last week's sentiment: 76% short
Short sentiment grows in USD/JPY as it approaches historic highs. US dollar now trades less than 100 pips away from 30-year highs against the yen - currently around 149.50.
USD/CHF sentiment - 58% long
Last week's sentiment: 65% long
USD/CHF has closed higher 13 days in a row to reach a 6-month high over 0.9200. As a result, fewer traders hold long positions this week, though a majority still do.
AUD/USD sentiment - 82% long
Last week's sentiment: 74% long
More than four out of five traders are long Australian dollar against USD. This sentiment comes as AUD/USD hit a year-to-date low today under 0.6350.
USD/CAD sentiment - 51% short
Last week's sentiment: 52% long
Canadian dollar sentiment flips once again as USD/CAD hovers around 1.3500. 50/50 sentiment reflects price history in the pair as it trades near the middle of its year-to-date range.
*Client sentiment data as of 4:00pm ET 9/27/23
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.
