Australian Dollar at Potential Turning Point
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.14 as 47% of traders are long. Yesterday the ratio was -1.18; 46% of open positions were long. Long positions are 3.4% lower than yesterday and 2.1% above levels seen last week. Short positions are 6.4% lower than yesterday and 18.1% above levels seen last week. Open interest is 5.0% lower than yesterday and 9.0% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the AUDUSD may continue higher.
Yet we would ideally see a stronger shift towards crowd selling before getting long the AUDUSD.
See next currency section: NZDUSD - New Zealand Dollar Rally Looks in Danger
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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