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Australian Dollar Forecast Turns Bullish Once Again

David Rodriguez

DailyFX.com -

Australian Dollar Forecast Turns Bullish Once Again

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AUDUSD: Retail trader data shows 32.2% of traders are net-long with the ratio of traders short to long at 2.11 to 1. In fact, traders have remained net-short since Jan 09 when AUDUSD traded near 0.72343; price has moved 4.6% higher since then. The number of traders net-long is 2.6% higher than yesterday and 0.6% lower from last week, while the number of traders net-short is 14.3% higher than yesterday and 6.9% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests AUDUSD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUDUSD-bullish contrarian trading bias.

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