AUDUSD – Retail forex traders recently hit their most long AUDUSD on our record books, and our sentiment-based trading strategies continue selling enthusiastically into Australian Dollar weakness.
Trade Implications – AUDUSD: The question we keep getting is a simple one—why does the Australian Dollar keepfalling as stocks hit record-peaks? In a sense it doesn’t really matter: the fact is that “smart money” is betting on and hedging against further weakness, while retail crowds are far too enthusiastic in buying the same declines.
We’ll continue to look for fresh Australian Dollar short positions as the overall direction remains clear—especially as it threatens a break of a key rising trendline dating back to 2011 lows.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Download all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.