Australian Dollar Forecast to Decline Further
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at 2.28 as 70% of traders are long. Yesterday the ratio was 2.03; 67% of open positions were long. Long positions are 2.2% higher than yesterday and 15.8% below levels seen last week. Short positions are 9.2% lower than yesterday and 1.2% below levels seen last week. Open interest is 1.6% lower than yesterday and 3.6% 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 grown further net-long from yesterday but moderated since last week. We maintain a contrarian bearish trading bias.
See next currency section: NZDUSD - New Zealand Dollar in Position to Continue Lower
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.