AUDUSD – The Australian Dollar breakdown looks like the real deal, and a substantial shift in sentiment favors continued AUDUSD weakness.
Trade Implications – AUDUSD:There are now more than two retail traders long the Australian Dollar for every one that is long; net positions are at their most extreme since June. In that instance, one-sided sentiment coincided with an important AUDUSD low. We can’t rule out similar at this point—particularly as the US Dollar looks at risk versus the Euro and GBP. Yet until crowds switch direction, we’ll remain in favor of further AUD declines.
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