EUR/USD traders are still intent on reaching higher levels, regardless of the massive bets on a rise.
But this bullying style of trading could get them into trouble.
Every time EUR/USD bets have climbed as high, the pair has reversed dramatically and bets have been unwound nL1N2FD095.
Probabilities are high that pattern will be repeated.
The current drive to buy dips and push the pair up, regardless of a rise in risk appetite that ill suits long positions, is likely to exacerbate the scale of a reverse nL1N2FD07G].
Profit-taking is already underway elsewhere.
Gold has dropped over 3% today and is 5.2% below its record peak.
Gold traders are similarly positioned to EUR/USD traders and, like EUR, many gold traders are long because it an asset that offers safety nL1N2FD06C.
In fact, neither gold nor euro are safe when many traders are invested as deeply as they are today.
In contrast, U.S. stocks suggest the dollar, which has been sold aggressively, is cheap.
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