Australian Dollar Turnaround at Clear Risk - Time to Sell?
AUDUSD – A major turn in forex trading crowd sentiment suggests the Australian Dollar bounce may be over, and indeed our Senior Technical Strategist believes AUDUSD short positions are now attractive.
Trade Implications – AUDUSD: Several weeks ago we called for a major Australian Dollar bounce, and indeed we saw a respectable rally to fresh month-to-date highs. But the AUDUSD’s failure to break higher gives clear reason for pause on that outlook. Our sentiment-based Momentum2 trading system recently closed an AUDUSD-long position, and we would view a move to AUD-short as a signal of a bigger decline.
--- 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.