Australian Dollar Likely to Continue Lower
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at 2.29 as 70% of traders are long. Yesterday the ratio was 2.17; 68% of open positions were long. Long positions are 2.5% higher than yesterday and 1.6% above levels seen last week. Short positions are 3.0% lower than yesterday and 18.3% below levels seen last week. Open interest is 0.8% higher than yesterday and 0.4% 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 grown further 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 Forecast to Hit Fresh Lows
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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