Australian Dollar Presents Sell Opportunity
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AUDUSD – The Australian Dollar continues to stick to a tight range versus the US Dollar, and relatively steady retail FX trader sentiment suggests that the pair will continue to stick below key resistance.
Trade Implications – AUDUSD: Our sentiment reading is effectively neutral as 51% of the open positions in our sample are long the Australian Dollar. Coupled with volatility near record-lows, our retail data points to continued consolidation and range trading opportunities in the AUDUSD. Until volatility returns we’ll look to buy currencies at support and sell those at resistance. For the Aussie this leaves focus on its recent price ceiling near $0.9440 and congestion between $0.9300-9350.
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--- 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.