Australian Dollar Forecast to Fall Further

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AUDUSD: Retail trader data shows 57.7% of traders are net-long with the ratio of traders long to short at 1.36 to 1. The percentage of traders net-long is now its highest since Dec 18 when AUDUSD traded near 0.72893. The number of traders net-long is 7.7% higher than yesterday and 37.3% higher from last week, while the number of traders net-short is 2.7% lower than yesterday and 22.8% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUDUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUDUSD-bearish contrarian trading bias.