We Favor Selling Australian Dollar until this Changes
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AUDUSD – Retail FX traders remain aggressively long the Australian Dollar versus the US Dollar, and until this changes we will continue to favor selling any near-term AUD bounces.
Trade Implications – AUDUSD:Our retail FX trader sample shows there are currently 2.3 long positions for every short position—nearly 70 percent of open interest. Such impressively one-sided sentiment often occurs at or near important market turning points, but until we see concrete signs of reversal we see little reason to call for a meaningful Australian Dollar bounce. Indeed, our trading bias remains to sell any near-term bounces.
See next currency section:NZDUSD - New Zealand Dollar Reversal is Short-Lived
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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