Correction May Be Finished as AUDUSD Sentiment Widens Again
AUDUSD – The ratio of long to short positions in the AUDUSD stands at 1.93 as 66% of traders are long. Yesterday the ratio was 2.06; 67% of open positions were long. Long positions are 3.8% lower than yesterday and 6.3% above levels seen last week. Short positions are 2.3% higher than yesterday and 9.8% below levels seen last week. Open interest is 1.8% lower than yesterday and 2.0% below its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the AUDUSD may continue lower. The trading crowd has grown less net-long from yesterday but further long since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
--- Written by Christopher Vecchio, Currency Analyst
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