Australian Dollar at Clear Risk of Continued Breakdown
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Trade Implications – AUDUSD:Our retail FX data shows that there are an impressive 2.8 long positions for every position short the AUDUSD—coming close to extremes not seen since May as the AU$ tested key support at $0.9200. In that instance it set an important short-term low before breaking down in September. And though heavily one-sided positions often occur at major market tops/bottoms, the actual extreme is only clear in hindsight. Until we see a sustained shift in sentiment we’ll continue call for AUDUSD weakness.
See next currency section: NZDUSD - New Zealand Dollar Targets Fresh Lows
--- 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.