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Australian Dollar Forecast to Fall to Further Lows

David Rodriguez

DailyFX.com -

Australian Dollar Forecast to Fall to Further Lows

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AUDUSD - The ratio of long to short positions in the AUDUSD stands at 2.08 as 68% of traders are long. Yesterday the ratio was 1.97; 66% of open positions were long. Long positions are 7.8% higher than yesterday and 38.3% above levels seen last week. Short positions are 1.8% higher than yesterday and 26.3% below levels seen last week.

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 and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.

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