Australian Dollar No Longer a Clear Sell versus Greenback
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
AUDUSD – Extremely one-sided retail FX trader positions suggest that the Australian Dollar may remain in a downtrend versus the US Dollar. Yet a broader shift in USD positioning warns against buying into recent Greenback tumbles (selling AUDUSD gains).
Trade Implications – AUDUSD:Our data on retail trader open positions shows that long positions outnumber those short by an impressive 2.4 to 1—roughly unchanged from last week. Normally we would treat this as clear contrarian signal that the pair may continue lower. Yet it’s difficult to ignore the substantive swings in USD positioning versus other FX majors.
See next currency section: NZDUSD - New Zealand Dollar Gains May Slow
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.