Trade Implications – AUDUSD: Last week we noted a major spike in real FX volume as signal that the Aussie was on pace for a major test of key highs, and the subsequent reversal helps confirm that this was an in fact an important turning point. Retail traders are now their most net-long AUDUSD since it traded off of $0.9200 just two months ago.
At that point it marked an important low, but a break of key support warns that the Aussie has further room to fall unless we see a significant shift in crowd sentiment. Multi-month lows near $0.9200 remain a key line in the sand.
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