Australian Dollar Direction Couldn’t Be Any More Clear
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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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.