Australian Dollar Forecast to Test Key Lows

DailyFX

View photo

.
ssi_aud-usd_body_Picture_17.png, Australian Dollar Forecast to Test Key Lows

AUDUSD – Forex trading crowds have aggressively bought into Australian Dollar weakness versus the US Dollar, and our contrarian trading systems have sold AUDUSD in anticipation of further declines.

Trade Implications – AUDUSD: It remains a frustrating run of performance for our purely sentiment-driven Momentum2 strategy, as it has flipped direction on AUDUSD four times in the past three weeks. It is subsequently difficult to get excited about its current short position from $1.0244, but it’s clear that trading crowds have bought aggressively into recent weakness.

The month of May has thus far proven kind to the US Dollar (ticker: USDOLLAR), and it seems relevant to wonder whether this is the start of a larger AUDUSD breakdown. Our Senior Technical Strategist believes that AUD-short positions remain attractive on the potential for said continuation.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

ssi_aud-usd_body_1a_3.png, Australian Dollar Forecast to Test Key Lows

Download all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments (0)