Australian Dollar Gives Bullish Signal Despite Sentiment
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AUDUSD: Retail trader data shows 56.1% of traders are net-long with the ratio of traders long to short at 1.28 to 1. In fact, traders have remained net-long since May 03 when AUDUSD traded near 0.75395; price has moved 1.4% lower since then. The number of traders net-long is 12.7% lower than yesterday and 14.6% lower from last week, while the number of traders net-short is 11.4% lower than yesterday and 3.3% 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current AUDUSD price trend may soon reverse higher despite the fact traders remain net-long.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.