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Australian Dollar May Trade to Further Highs

David Rodriguez

DailyFX.com -

Australian Dollar May Trade to Further Highs

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AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.18 as 46% of traders are long. Yesterday the ratio was -1.09; 48% of open positions were long. Long positions are 2.1% lower than yesterday and 15.1% below levels seen last week. Short positions are 5.8% higher than yesterday and 6.1% above levels seen last week. Open interest is 2.0% higher than yesterday and 6.2% below its monthly average.

We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are 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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