Australian Dollar Poised for Further Losses versus US Dollar

By DailyFx | Updated July 31, 2014 AAA

DailyFX.com - Australian Dollar Poised for Further Losses versus US Dollar

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

AUDUSD A substantial shift in retail FX positioning warns that the Australian Dollar may trade to fresh lows versus the US Dollar.

Trade Implications – AUDUSD: Last week we noted a major spike in real FX volume as signal that the Aussie was on pace for a major test of key highs, and the subsequent reversal helps confirm that this was an in fact an important turning point. Retail traders are now their most net-long AUDUSD since it traded off of $0.9200 just two months ago.

At that point it marked an important low, but a break of key support warns that the Aussie has further room to fall unless we see a significant shift in crowd sentiment. Multi-month lows near $0.9200 remain a key line in the sand.

See next currency section: SPX500 - Need to See a Larger Move to Confirm S&P 500 Top

You May Also Like

Related Forex Analysis
  1. Forex News

    Yen Down on Risk Appetite Swell But Year-End Flows May Fuel Turn

  2. Forex News

    AUD/USD Technical Analysis: Support Found Above 0.81

  3. Forex News

    AUD/USD Exhaustion Trade- Shorts at Risk Above 8064

  4. Forex News

    US Dollar Once Again Looks like a Buy versus Euro, Major Currencies

  5. Forex News

    We Favor Selling Australian Dollar until this Changes

Trading Center