Australian Dollar Direction Couldnt Be Any More Clear
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
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