Australian Dollar Levity Finds Support as Positioning Narrows
AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.55 as 61% of traders are long. Yesterday the ratio was 1.63; 62% of open positions were long. Long positions are 2.2% lower than yesterday and 6.8% below levels seen last week. Short positions are 2.8% higher than yesterday and 0.5% below levels seen last week. Open interest is 0.3% lower than yesterday and 4.0% above 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.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
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