Traders Split onAustralian Dollar Giving Mixed Signal
Why and how do we use IG Client Sentiment in trading? See our guide.
AUDUSD: Retail trader data shows 51.0% of traders are net-long with the ratio of traders long to short at 1.04 to 1. In fact, traders have remained net-long since May 03 when AUDUSD traded near 0.75395; price has moved 1.2% lower since then. The number of traders net-long is 6.6% lower than yesterday and 23.8% lower from last week, while the number of traders net-short is 9.3% higher than yesterday and 11.4% higher 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.