Australian Dollar Likely to Hit Fresh Highs
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AUDUSD– Retail forex traders have sold aggressively into Australian Dollar gains versus the US Dollar, and a contrarian view of ‘crowd’ sentiment warns that the AUD/USD exchange rate may continue higher. Indeed, our data shows that traders are now at their most net-short the Aussie Dollar since the pair traded into yearly highs near the $0.7800 mark in April.
Until we see a substantive sentiment swing in the opposite direction, we see little reason to call for an Australian Dollar price turnaround. Instead we will look to buy into the most recent price break higher.
See next currency section: S&P - US Stocks Remain a Buy until this Changes
--- Written by David Rodriguez, Senior Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.