Australian Dollar May Have Set Important Top
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AUDUSD – The Australian Dollar trades near 8-month highs and yet retail FX positions remain relatively neutral. An important disconnect clouds outlook, but one-sided futures positioning acts as clear warning.
Trade Implications – AUDUSD: Our proprietary sentiment data shows that traders have mostly been selling into recent Aussie Dollar gains, but a jump in buying since yesterday actually leaves them modestly net-long. A further build in crowd buying would act as contrarian signal that the AUDUSD may have set an important top near the $0.9500 mark. These are the technical levels we’re watching going forward.
See next currency section: GOLD - Gold Prices Could Continue Higher
--- 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.