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Australian Dollar Turn Lower Short Lived

ssi_aud-usd_body_Picture_20.png, Australian Dollar Turn Lower Short Lived - We'll Cut Losses

AUDUSD – A substantial shift in forex retail trading crowd positions gives us clear pause in our previous calls for Australian Dollar weakness, and the next AUDUSD move is critical.

Trade Implications – AUDUSD: We made a fairly aggressive claim in favor of AUDUSD weakness on the basis of aggressively one-sided crowd sentiment and a jump in forex volatility prices in AUD pairs. Unfortunately a sharp turn lower in Aussie volatility prices has coincided with a similarly big shift in positions. We have little choice but to abandon our sentiment-based Breakout2 trading system until further notice.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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