Australian Dollar Likely to Break Lower versus Greenback
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AUDUSD – The retail FX trading crowd remains heavily long the Australian Dollar versus its US namesake, and such consistent buying acts as contrarian signal that the AUDUSD may continue lower.
Trade Implications – AUDUSD:The Aussie Dollar remains in a tight trading range, and there’s clear risk that consolidation could lead to a significant breakout or breakdown. Given such one-sided crowd sentiment we believe such a break will be lower. There seems to be little in the way of a test of multi-year lows near $0.8650, and a further break would target 2010 troughs at $0.8100.
See next currency section: NZDUSD - New Zealand Dollar Targets Fresh Lows
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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