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AUDUSD – A material shift in retail FX trader sentiment leads us to believe that the Australian Dollar likely set a significant low versus the US Dollar.
Trade Implications – AUDUSD:Our retail FX trader data shows the majority of traders have remained long AUDUSD with brief exception since it traded below $0.9400 in 0, 2014, and a contrarian view of sentiment kept us consistently in favor of selling into weakness. Yet as of this morning ‘the crowd’ has flipped, and this represents a potentially substantial shift.
It is obviously early and calling for major trend reversals is very risky. Yet we see broader signs of a US Dollar turnaround, and the flip in AUDUSD positions warns of further gains.
See next currency section: NZDUSD - New Zealand Dollar Expected to Gain Further
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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