Australian Dollar May be a Sell versus US Dollar
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AUDUSD: Retail trader data shows 38.2% of traders are net-long with the ratio of traders short to long at 1.62 to 1. In fact, traders have remained net-short since Jun 04 when AUDUSD traded near 0.73799; price has moved 3.0% higher since then. The number of traders net-long is 1.1% higher than yesterday and 3.6% higher from last week, while the number of traders net-short is 3.3% lower than yesterday and 8.8% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests AUDUSD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current AUDUSD price trend may soon reverse lower despite the fact traders remain net-short.
See next article in this week’s report: S&P 500 - S&P 500 Has Rallied – How Much Further Can it Go?
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