Australian Dollar Forecast to Continue Higher
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AUDUSD: Retail trader data shows 30.3% of traders are net-long with the ratio of traders short to long at 2.3 to 1. In fact, traders have remained net-short since Jun 04 when AUDUSD traded near 0.74772; price has moved 6.5% higher since then. The number of traders net-long is 17.7% lower than yesterday and 16.4% lower from last week, while the number of traders net-short is 9.8% higher than yesterday and 1.6% 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUDUSD-bullish contrarian trading bias.
See next article in this week’s report: S&P 500 - Stocks Likely to Press to Fresh Highs
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