FOREX ANALYSIS: Australian Dollar Likely Topped

ssi_gbp-jpy_body_Picture_1.png, FOREX ANALYSIS: Australian Dollar Likely Topped

AUDUSD – Retail forex traders are now net-long the Australian Dollar versus the US Dollar (ticker: USDOLLAR) for the first time in a month, and the sharp shift in retail sentiment warns that the AUDUSD may have set a significant top through recent trading.

A sharp Australian Dollar sell-off from the November high was the first signal that the AUD may have set a significant peak, and we’ve likewise seen the number of retail traders long AUDUSD surge 32 percent since the peak. A similar 28 percent tumble in the number of traders short now leaves crowds at a net-long AUD position for the first time since October.

We use our proprietary Speculative Sentiment Index data as a contrarian indicator to price action; if the majority of traders are buying, we prefer to sell. Indeed, our retail sentiment-based FX trading strategies took a AUDUSD short from $1.0378.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at https://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4148+0.0022+0.16%
    USDSGD=X
    1.5958-0.0021-0.13%
    EURSGD=X
    2.1630+0.0008+0.04%
    GBPSGD=X
    84.6545+0.1289+0.15%
    SGDJPY=X
    5.4775-0.0086-0.16%
    SGDHKD=X
    2.9769+0.0082+0.28%
    SGDMYR=X
    9,987.1025+47.2363+0.48%
    SGDIDR=X
    4.4938-0.013-0.29%
    SGDCNY=X
    0.9913+0.0003+0.03%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,141.30+1.50+0.13%
    GCZ15.CMX
    14.59-0.03-0.24%
    SIZ15.CMX
    46.81-1.62-3.34%
    ^XAU
    2.300.00+0.07%
    HGZ15.CMX
    44.38-1.03-2.27%
    CLV15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.50-0.04
    ^FVX
    2.17-0.03
    ^TNX
    2.930.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.132+0.004+3.12%
    5DN.SI
    0.310.00-1.59%
    5WA.SI
    0.535+0.015+2.88%
    N21.SI
    0.71+0.01+1.43%
    5ME.SI
    0.740.00-0.67%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.235+0.037+18.69%
    C10.SI
    0.128+0.018+16.36%
    T77.SI
    0.485+0.055+12.79%
    MN5.SI
    0.335+0.035+11.67%
    5VI.SI
    0.255+0.025+10.87%
    L38.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.105-0.033-23.91%
    5DL.SI
    0.49-0.14-22.22%
    AXZ.SI
    0.17-0.03-15.00%
    5G1.SI
    0.094-0.016-14.55%
    F10.SI
    0.14-0.02-12.50%
    T19.SI