Australian Dollar Weakness Sees No End in Sight
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Australian dollar – Retail forex traders are their most long the Australian Dollar since the pair traded below $0.9000 in late August, and a contrarian view of crowd sentiment leaves us steadily in favor of selling into weakness.
Trade Implications – AUDUSD: Our purely retail sentiment-based Momentum2 strategy has consistently sold into AUD declines, and the strategy seems likely to sell once more as the number of open orders long now outweigh those short by nearly 2.5 to 1. As long as crowds continue to buy, we’ll remain bearish.
--- 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.