Australian Dollar Outlook Unclear until this Changes
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AUDUSD: Retail trader data shows 38.3% of traders are net-long with the ratio of traders short to long at 1.61 to 1. In fact, traders have remained net-short since Jun 04 when AUDUSD traded near 0.74988; price has moved 5.8% higher since then. The number of traders net-long is 21.0% higher than yesterday and 11.3% higher from last week, while the number of traders net-short is 7.7% higher than yesterday and 10.1% higher 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 - Forecast Shifts Sharply as Traders Change Direction
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