AUDUSD – We’ve written repeatedly in favor of Australian Dollar weakness against the resurgent US namesake, and extremely one-sided retail forex sentiment leaves us plainly in favor of further weakness.
Trade Implications – AUDUSD: Nothing moves in a straight line, and we’re very much aware that the risk of a short-term bounce is significant. But we can’t ignore signs that this is simply the beginning of AUDUSD (and S&P 500) weakness—we’re watching for further weakness.
A hold below week-to-date congestion highs at $0.9840 leaves our short-term bullish trading bias intact.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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
- Finance Trading
- Utility Industry