Australian Dollar May Bounce as Crowds Sell
AUDUSD – Retail forex traders have stopped buying the Australian Dollar, and in fact a recent shift in positioning suggests the AUDUSD may continue higher through short-term trading.
Trade Implications – AUDUSD: Our sentiment-based trading strategies have most recently bought the Australian Dollar against the Japanese Yen and US Dollar, as a sharp shift in retail trader sentiment warns that this may be the start of a larger correction. The overall trend remains down, but counter-trend traders might find AUDUSD buying opportunities as near-term targets are in the $1.0374-$1.0400 range.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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