Australian Dollar Bearish as Short Positions Fall
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AUDUSD: Retail trader data shows 59.3% of traders are net-long with the ratio of traders long to short at 1.46 to 1. In fact, traders have remained net-long since May 03 when AUDUSD traded near 0.74258; price has moved 0.6% lower since then. The number of traders net-long is 2.0% higher than yesterday and 18.1% higher from last week, while the number of traders net-short is 1.5% higher than yesterday and 19.9% 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.
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