Recent EUR/USD buyers are seeing far less bang for their buck and the greater bets on a further rise become, the harder it will be to make a profit.
Since EUR/USD longs reached record levels in late July the pair has made far less upside progress.
In July EUR/USD rose rapidly from 1.1185 to 1.1908.
In August the pair has ground out a further 58 pips, reaching 1.1966 EBS yesterday.
In the two weeks to Aug.
11 traders added EUR 5.2 billion to the long position, taking the total to EUR 24.5 billion.
Given the drive for higher levels since then, the net long position has very likely increased.
Traders who made huge profits in July are likely to be disappointed with gains in August.
Should longs reach greater proportions then they are going to provide even more drag.
EUR/USD has met or nearly achieved three significant targets near 1.2000.
There is never a bad time to book a profit. nL1N2FL07W
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