Australian Dollar Bottom in Place - Looking to Buy
Trade Implications – AUDUSD: If you’ve only been following my analysis for the past fewweeks, you might not believe me when I say this: it’s rare I make such brazen forecasts. But the fact is that it’s unusual that I see enough evidence to call for a substantial reversal of a longstanding price trend. See my article on the AUDUSD bottom two days ago for full backstory on why I think this is a major Aussie Dollar low.
I’m seeing further evidence today via retail forex positioning. Since last week, retail long interest in the AUD has fallen a substantial 30% while short interest is up nearly 10%. I like the fact that our SSI-based Momentum2 strategy is now buying because of the significant shift in retail sentiment, and indeed my short-term price targets begin at $0.9780. Risk is the recent low at $0.9430.
--- 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.