AUDUSD – Retail forex crowds remain heavily long the Aussie Dollar versus its US namesake—normally making us bearish. But crowds have sold aggressively and we see signs the AUDUSD could recover.
Trade Implications – AUDUSD: We’ve been caught out prematurely calling for an Australian Dollar bottom more times than we care to admit. But the sharp swing in retail sentiment suggests markets are trying to tell us something with the Australian Dollar – we favor long positions.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
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