Traders who have wagered an immense amount of cash on a rise hold EUR/USD's fate in their hands - and they have good reason to worry.
The gamble on the pair rising is the second-largest big trade on record - only bettered in 2020 when a lot of gambling was fuelled by the enormous amounts of cash spent globally to mitigate the effect of pandemic lockdowns.
This year bullish positions have reached roughly $25 billion and buying is split into two camps.
The bulk of longs were established between September and February when the pair rocketed from 0.9528 to 1.1034.
Many of these bets may still be profitable, and after seeing EUR/USD stall above 1.10 - to threaten a return to the 1.05-1.10 range - those betting on rise may be inclined to take their profit
In contrast to those earlier bets, roughly $6 billion of current longs were established since the beginning of April.
Many of these bets are at risk of losing, and many may already be under water.
Whether they are winning or losing, the drop since the start of May should encourage traders to sell.
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