Australian Dollar Shows Signs of Life
AUDUSD – Retail forex trading crowds have most recently sold into Australian Dollar strength. And although the majority of traders remain long AUDUSD, the shift in sentiment suggests the Aussie Dollar may have set a noteworthy low.
Trade Implications – AUDUSD: The US Dollar remains in obvious uptrend across the board, but substantially one-sided futures traders forex positions in AUDUSD futures suggests the Aussie Dollar may be a relative outperformer. That coincides with retail sentiment, which has become far less one-sided through last week. Our Momentum2/”Tidal Shift” strategy is mostly long USD against other pairs, but it has once again bought AUDUSD from $0.9136. We think said position has a fair chance at success.
--- 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.