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Is this the Australian Dollar Turnaround?

Is this the Australian Dollar Turnaround?

David Rodriguez, Head of Product
ssi_aud-usd_body_Picture_15.png, Is this the Australian Dollar Turnaround?

AUDUSD – Forex trading crowds remain aggressively long the Australian Dollar against its US namesake—normally enough to keep us bearish. But we see material risk of an AUDUSD reversal.

Trade Implications – AUDUSD: We’ve called for a major turn in the Australian Dollar more times than we care to admit, but the most recent turnaround seems as likely as ever to produce a lasting AUDUSD bounce. Our Retail FX sentiment indicator shows that the vast majority of traders remain long (2.2 long orders to 1 short). Yet that’s a substantive reversal from just 7 days ago when the same ratio stood at 4.4:1.

Is this the major turn? Sentiment extremes are only clear in hindsight, but the fact that our SSI-based Momentum2 system has gone long from $0.8987 adds further weight to calls for a bounce.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

ssi_aud-usd_body_Picture_10.png, Is this the Australian Dollar Turnaround?

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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