Australian Dollar Likely to test Key Lows
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AUDUSD –Retail FX traders remain heavily long the Australian Dollar versus its US namesake, and a contrarian view of crowd sentiment leaves us firmly in favor of selling into weakness. It is worth noting that positioning has moderated since last week; short positions are up 24 percent while long positions are up a much lesser 6 percent. Until we see a more sustained shift towards selling, however, we will stick to our contrarian AUD-trading bias.
See next currency section: NZDUSD - New Zealand Dollar Forecast to Tumble Further
--- 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.