Tanalys

Markets Trying to Tell us Something

ssi_aud-usd_body_Picture_21.png, Markets Trying to Tell us Something - Looking to Buy AUDUSD

AUDUSD – Retail forex crowds remain heavily long the Aussie Dollar versus its US namesake—normally making us bearish. But crowds have sold aggressively and we see signs the AUDUSD could recover.

Trade Implications – AUDUSD: We’ve been caught out prematurely calling for an Australian Dollar bottom more times than we care to admit. But the sharp swing in retail sentiment suggests markets are trying to tell us something with the Australian Dollar – we favor long positions.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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