Australian Dollar Forecast to Hit Further Highs
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AUDUSD– An aggressive shift in retail forex trader positions warns that the Australian Dollar may continue higher through the foreseeable future. Our retail trader data shows that a notable 65 percent of open AUD/USD positions are currently short. We most often use the SSI as a contrarian indicator to price action; if everyone is selling we look to buy and vice versa.
The aggressive turn towards AUD/USD selling thus leads us to believe the pair will continue higher. And indeed it would take a substantive turn in the opposite direction to negate our bullish forecast.
See next currency section: XAUUSD - Gold Prices Likely to Continue Higher Until this Changes
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.