Australian Dollar May Rise as Retail Traders Become More Bearish AUD/USD
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<h2>Australian Dollar, AUD/USD, Technical Analysis, Retail Trader Positioning – IGCS Update</h2>
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<li><span>Australian Dollar</span><span> cautiously climbing in recent days</span></li>
<li><span>Retail traders have been slowly boosting bearish bets</span></li>
<li><span>Is this a sign that </span><span>AUD/USD</span><span> may continue higher next?</span></li>
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<p>The Australian Dollar has been pushing cautiously higher in recent days. In response, retail traders have been slowly increasing downside exposure in AUD/USD. This can be seen by taking a look at IG Client Sentiment (IGCS), which often functions as a contrarian indicator. With that in mind, could further gains be ins tore for the exchange rate?</p>
<h3>AUD/USD Sentiment Outlook – Bullish</h3>
<p>The IGCS gauge shows that about 74% of retail traders are net-long AUD/USD. Since most of them are still biased to the upside, this hints that prices may continue falling down the road. That said, downside exposure has increased by 21.6% and 13.5% compared to yesterday and last week, respectively. With that in mind, recent changes in positioning hint that the price trend may soon reverse higher.</p>
<p><img decoding="async" loading="lazy" src="https://a.c-dn.net/b/2tA4gA/image1.png" alt="AUD/USD Sentiment Outlook – Bullish" data-image-original-width="1800" data-image-original-height="1200" width="1800" height="1200" class="dfx-lazyload" style="padding-bottom: calc(1200 / 1800 * 100%);" /></p>
<h3>Australian Dollar Daily Chart</h3>
<p>Looking at the daily chart below, the Australian Dollar has closed above the 20-day Moving Average. This followed the emergence of positive RSI divergence, a sign of fading downside momentum. The latter can at times precede a turn higher. Now, the focus is on the 0.6459 inflection point as immediate resistance, followed by the 50-day Moving Average.</p>
<p>The latter may hold as resistance, maintaining the broader downside technical bias. Otherwise, further gains would subsequently place the focus on the 0.6568 inflection point. In the event of a turn lower, clearing support at 0.6382 (78.6% level) exposes the November low of 0.6272 before the October 2022 bottom of 0.6170 kicks in.</p>
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Recommended by Daniel Dubrovsky
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<p><img decoding="async" loading="lazy" src="https://a.c-dn.net/b/0Xn5EN/image2.png" alt="Australian Dollar Daily Chart" data-image-original-width="1334" data-image-original-height="748" width="1334" height="748" class="dfx-lazyload" style="padding-bottom: calc(748 / 1334 * 100%);" /></p>
<p><span>Chart Created in Trading View</span></p>
<p><span>— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com</span></p>
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<br /><a href="https://www.dailyfx.com/analysis/australian-dollar-may-rise-as-retail-traders-become-more-bearish-aud-usd-20230919.html">Source link </a></p><p>The post <a href="https://forextraderhub.com/australian-dollar-may-rise-as-retail-traders-become-more-bearish-aud-usd.html">Australian Dollar May Rise as Retail Traders Become More Bearish AUD/USD</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>
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