Australian Dollar at Risk of Turn Lower
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.01 as 50% of traders are long. Yesterday the ratio was -1.45; 41% of open positions were long. Long positions are 4.5% higher than yesterday and 0.5% above levels seen last week. Short positions are 28.5% lower than yesterday and 0.7% below levels seen last week. Open interest is 15.0% lower than yesterday and 5.0% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the AUDUSD may continue lower. The trading crowd has flipped from net-short to net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section:NZDUSD - New Zealand Dollar Rally May be Cut Short
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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