Australian Dollar Outlook Shifts on Sentiment Change
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.74 as 63% of traders are long. Yesterday the ratio was 2.63; 72% of open positions were long. Long positions are 19.1% lower than yesterday and 9.6% below levels seen last week. Short positions are 22.8% higher than yesterday and 20.8% above levels seen last week. Open interest is 7.5% lower than yesterday and 4.8% 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 less net-long 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 Remains in Fairly Clear Downtrend
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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