U.S. Markets closed

Australian Dollar Downtrend Remains Intact

David Rodriguez

DailyFX.com -

Australian Dollar Downtrend Remains Intact

Why and how do we use the SSI in trading? View our video and download the free trading guide here

AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.45 as 59% of traders are long. Yesterday the ratio was 1.42; 59% of open positions were long. Long positions are 2.1% lower than yesterday and 4.3% below levels seen last week. Short positions are 4.1% lower than yesterday and 3.9% above levels seen last week. Open interest is 2.9% lower than yesterday and 0.2% 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 moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.

original source

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 IG.