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Australian Dollar to Continue Higher versus US Dollar

David Rodriguez

DailyFX.com -

Australian Dollar to Continue Higher versus US Dollar

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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.54 as 39% of traders are long. Yesterday the ratio was -1.53; 39% of open positions were long. Long positions are 4.6% lower than yesterday and 20.7% below levels seen last week. Short positions are 4.2% lower than yesterday and 30.5% below levels seen last week. Open interest is 4.3% lower than yesterday and 23.9% below its monthly average.

We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the AUDUSD may continue higher. The trading crowd has grown further net-short from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.

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