AUD/USD Rate Outlook Hinges On Looming RSI Signal

Image of IG Client Sentiment for AUD/USD rate

The IG Client Sentiment report shows 35.93% of traders are net-long with the ratio of traders short to long at 1.78 to 1. The number of traders net-long is 19.83% higher than yesterday and 7.34% higher from last week, while the number of traders net-short is 3.19% lower than yesterday and 3.94% lower from last week.

The decline in net-short position comes as AUD/USD tags a fresh yearly high (0.7454) earlier this week, while the rise in net-long interest has helped to alleviate the tilt in retail sentiment as only 32.11% of traders were net-long the pair at the start of December.

With that said, key market trends may continue to influence AUD/USD as the US Dollar broadly reflects an inverse relationship with investor confidence, and looming developments in the Relative Strength Index (RSI) may show the bullish momentum gathering pace as the indicator flirts with overbought territory for the first time since September.




Image of AUD/USD rate daily chart

Source: Trading View

View single page >> |

Disclosure: See the full disclosure for DailyFX here.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.