Australian Dollar Forecast Turns Bearish
AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.92 as 66% of traders are long. Yesterday the ratio was 1.69; 63% of open positions were long. Long positions are 5.6% higher than yesterday and 27.2% above levels seen last week. Short positions are 6.9% lower than yesterday and 35.0% below levels seen last week. Open interest is 0.9% higher than yesterday and 8.5% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the AUDUSD may continue lower. The trading crowd has grown further net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
--- Written by Christopher Vecchio, Currency Strategist
To receive reports from this analyst, sign up for Christopher’s distribution list.
Contact Christopher via Twitter at http://www.twitter.com/CVecchioFX