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AUDUSD – An aggressive reversal in the Australian Dollar warns that the currency may remain in its long-standing downtrend versus the US Dollar.
Trade Implications – AUDUSD:Retail FX traders are once again heavily net-long the AUDUSD, and a contrarian view of crowd sentiment favors further downside. Last week we cited a sharp shift towards AUD-selling as a key reason the pair could continue higher, but that proved premature at best. It will likely take a much more substantial shift in broader market sentiment to force a meaningful AUDUSD reversal.
See next currency section: NZDUSD - New Zealand Dollar Rally Falls Short
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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