Australian Dollar Fails to Rally Above Key Resistance
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.03 as 49% of traders are long. Yesterday the ratio was -1.33; 43% of open positions were long. Long positions are 10.4% higher than yesterday and 12.0% above levels seen last week. Short positions are 14.0% lower than yesterday and 3.6% below levels seen last week. Open interest is 3.5% lower than yesterday and 4.1% 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. The trading crowd has grown less net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:NZDUSD - New Zealand Dollar Stumbles, Forecast Unclear
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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