Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Australian Dollar May be at Brink of Much Larger Reversal

Australian Dollar May be at Brink of Much Larger Reversal

David Rodriguez, Head of Product

NEW: View Real-Time SSI Updates via the FXCM Trading Station Desktop

AUDUSD – Retail FX crowds remain net-long the Australian Dollar by a fair margin; they have remained so since May as it traded below $0.8000. Such consistent sentiment has indeed provided us with a steadily bearish contrarian trading bias and to good effect. It is nonetheless worth noting that there has been a significant shift in positions as the AUDUSD bounces off of major lows; short positions have surged 25 percent since last week, while long positions are down 9 percent.

It may very well be that the recent shift marks the start of a more significant Australian Dollar reversal, but we would have to see a much larger change before switching in favor of an AUD-buying bias. And indeed failure at $0.7400 warns that the recent rally may prove short-lived.

See next currency section: NZDUSD - New Zealand Dollar Forecast to Continue Larger Downtrend

--- 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.

DISCLOSURES