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Australian Dollar Looks to Gain Further

David Rodriguez

DailyFX.com -

Australian Dollar Looks to Gain Further

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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.42 as 41% of traders are long. Yesterday the ratio was -1.27; 44% of open positions were long. Long positions are 1.5% lower than yesterday and 28.5% below levels seen last week. Short positions are 10.1% higher than yesterday and 27.0% above levels seen last week. Open interest is 5.0% higher than yesterday and 1.7% 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 unchanged since last week. The combination of current sentiment and recent changes gives a further bullish trading bias.

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