Australian Dollar Downtrend Remains Intact
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AUDUSD – Retail FX traders have most recently sold into the Australian Dollar bounce versus the US Dollar, but overall positioning remains heavily long and acts as a contrarian signal that the AUD/USD may continue lower. Indeed retail traders first turned net-long the Australian Dollar as it crossed below the $0.80 mark in May.
The very recent shift in retail positioning warns that the pace of AUD declines may slow. Yet the broader trend leaves us steadily in favor of selling into declines.
See next currency section:NZDUSD - New Zealand Dollar Forecast Points to Losses
--- 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.