Australian Dollar May Rally With Bullish-Contrarian Trading Bias
AUDUSD: Retail trader data shows 49.1% of traders are net-long with the ratio of traders short to long at 1.04 to 1. The number of traders net-long is 8.1% lower than yesterday and 2.1% lower from last week, while the number of traders net-short is 1.9% higher than yesterday and 15.7% 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. 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.
--- Written by Dylan Jusino, DailyFX Research
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