Australian Dollar Surge will be Put to the Test
AUDUSD – A substantial shift in retail forex trading crowd sentiment left traders net-short AUDUSD for the first time since it traded above $1.03 in April, but the next move may prove pivotal as our Senior Technical Strategist looks for a ‘tradable high’.
Trade Implications – AUDUSD: Total retail short interest in the AUDUSD nearly tripled as the pair made its run from $0.8900 to multi-month highs at $0.9350. Indeed, our sentiment-based Momentum2 system did well as it went against the sudden shift in sentiment. Yet the same strategy has now closed its long and crowds have bought into the overnight decline.
The next move may prove pivotal as we trade at significant highs and the US Dollar may be at a major turning point. Receive any and all updates on sentiment on my e-mail distribution list via this link.
--- 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.