FOREX ANALYSIS: Australian Dollar Forecast Turns Positive
AUDUSD – A sharp shift in retail forex trading sentiment suggests that the US Dollar (ticker: USDOLLAR) may fall further against the resurgent Australian Dollar. Last week we were plainly in favor of AUDUSD weakness as the majority of retail traders remained long. Yet short interest has surged 59 percent while the number of longs fell 32 percent through that stretch—leaving trading crowds net-short once more. We see further risk of short-term AUDUSD strength given the sharp sentiment shift.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.