• AUD/USD
    SELL
    -
    BUY
    -
    CHG
    -
  • EUR/GBP
    SELL
    -
    BUY
    -
    CHG
    -
  • EUR/JPY
    SELL
    -
    BUY
    -
    CHG
    -
  • EUR/USD
    SELL
    -
    BUY
    -
    CHG
    -
  • GBP/USD
    SELL
    -
    BUY
    -
    CHG
    -
  • USD/CAD
    SELL
    -
    BUY
    -
    CHG
    -
  • USD/CHF
    SELL
    -
    BUY
    -
    CHG
    -
  • USD/JPY
    SELL
    -
    BUY
    -
    CHG
    -

Four out of five traders long AUD/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.

Source: Bloomberg
Picture of Glen Frybarger
Glen Frybarger
Senior Content Strategist, Chicago

Forex sentiment update

Year-to-date extremes in AUD/USD and USD/JPY have caused large swings in client sentiment this week. 83% of AUD/USD traders hold long positions following lows under 0.6400 and another rate hold from the Reserve Bank of Australia.

Opportunity arises for both trend followers and contrarians with client sentiment over 60% in either direction in all six USD pairs below.

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 - 68% long

Last week's sentiment: 50% long

EUR/USD fell over 150 pips from last Wednesday's close to trade under 1.0740 today. Euro sentiment reflects the downward move with 18% more traders taking long positions in the pair in anticipation of a reversion.

GBP/USD sentiment - 65% long

Last week's sentiment: 52% short

British pound sentiment flipped back long after the pair dropped over 200 pips from last Wednesday's close. GBP/USD traded below 1.2500 this morning for the first time since mid-June.

USD/JPY sentiment - 76% short

Last week's sentiment: 75% short

USD/JPY hit a new year-to-date high yesterday - closing above 147.50 for the first time since November 2022. Traders continue to take a contrarian stance - believing the pair will revert toward its long-term mean.

USD/CHF sentiment - 67% long

Last week's sentiment: 79% long

12% fewer traders are long after USD/CHF rallied more than 100 pips from last Wednesday. The pair is now trading above 0.8900 for the first time since early July.

AUD/USD sentiment - 83% long

Last week's sentiment: 77% long

Long AUD/USD sentiment grew this week after the RBA elected to hold interest rates at 4.1% early Tuesday morning. AUD/USD hit a new year-to-date low Tuesday under 0.6380.

USD/CAD sentiment - 72% short

Last week's sentiment: 67% short

USD/CAD closed Tuesday at its highest price since March - above 1.3640. CAD weakness continues today after the BoC held interest rates at 5%.

How to trade client sentiment

  1. Open an account to get started, or practice on a demo account
  2. Choose your forex trading platform
  3. 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.