Australian Dollar Likely to Continue Lower
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
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
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.