Australian Dollar Poised for Larger and Faster Declines
AUDUSD – We’ve written repeatedly in favor of Australian Dollar weakness against the resurgent US namesake, and extremely one-sided retail forex sentiment leaves us plainly in favor of further weakness.
Trade Implications – AUDUSD: Nothing moves in a straight line, and we’re very much aware that the risk of a short-term bounce is significant. But we can’t ignore signs that this is simply the beginning of AUDUSD (and S&P 500) weakness—we’re watching for further weakness.
A hold below week-to-date congestion highs at $0.9840 leaves our short-term bullish trading bias intact.
--- 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.