Australian Dollar Likely to Continue Lower
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AUDUSD - The ratio of long to short positions in the AUDUSD stands at 2.01 as 67% of traders are long. Yesterday the ratio was 2.26; 69% of open positions were long. Long positions are 0.3% lower than yesterday and 8.2% above levels seen last week. Short positions are 11.7% higher than yesterday and 1.7% below levels seen last week. 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 but further long since last week. Until we see a marked shift towards crowd selling we will maintain our contrarian bearish trading bias on the AUDUSD.
See next currency section: NZDUSD - New Zealand Dollar Forecast Firmly in Favor of Depreciation
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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