Australian Dollar Looks to Test Lows
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.17 as 54% of traders are long. Yesterday the ratio was -1.41; 41% of open positions were long. Long positions are 3.4% higher than yesterday and 16.3% above levels seen last week. Short positions are 37.6% lower than yesterday and 49.1% below levels seen last week. Open interest is 20.6% lower than yesterday and 14.5% below 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 considerable shift towards crowd buying warns that the Australian Dollar may continue lower.
See next currency section:NZDUSD - New Zealand Dollar Outlook Remains Modestly Positive
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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