The Australian Dollar has been cautiously edging higher in recent days, prompting retail traders to gradually increase their bearish bets on AUD/USD. This shift in sentiment is evident when examining IG Client Sentiment (IGCS), which often acts as a contrarian indicator. Given this context, is it possible that the exchange rate could see further upward movement?
Outlook for AUD/USD Sentiment – Bullish
The IGCS data indicates that approximately 74% of retail traders are currently holding long positions on AUD/USD. As the majority of them remain bullish, this suggests that prices could potentially decline in the future. However, it's worth noting that downside exposure has risen by 21.6% compared to yesterday and 13.5% compared to last week. Considering these recent shifts in positioning, there is a possibility that the price trend could soon reverse and move higher.
Outlook for AUD/USD Sentiment – Bullish
The IGCS data indicates that approximately 74% of retail traders are currently holding long positions on AUD/USD. As the majority of them remain bullish, this suggests that prices could potentially decline in the future. However, it's worth noting that downside exposure has risen by 21.6% compared to yesterday and 13.5% compared to last week. Considering these recent shifts in positioning, there is a possibility that the price trend could soon reverse and move higher.
