Australian Dollar Remains in Clear Downtrend
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AUDUSD – Our retail FX trader data shows that 70 percent of open positions in our sample are currently long the Australian Dollar versus its US namesake. A contrarian view of crowd sentiment points to further losses.
Trade Implications – AUDUSD:The majority of traders turned long the AUDUSD in July as the pair failed to trade above the key $0.9500 mark. And with almost no interruption they have remained long since. Initially it seemed as though a sharp shift towards selling would be enough to change said fact as the pair made a run towards October highs at $0.89. But until we see a more sustained shift we will continue calling for AUD weakness.
See next currency section: NZDUSD - New Zealand Dollar Likely to Fall Further
--- 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.