Although we think it is still premature to talk about it, a fall of Aud below the support of area 0.87 as the one that is realizing at the moment should be carefully watched with great interest by investors desperate for returns. Obviously we are talking about tactics and not about strategic positioning, but maybe a fall in area 0.83 / 0.84, the transit area of the trend line joining the two recent primary lows, would be a great opportunity.
The sentiment on commodities is very depressed, that is not a bad point in a contrarian view.
Concerning the futures market, the net short achieved by hedge funds has begun to be satisfying (almost 30% of the open interest) and this, in the past, has always favoured the formation of a primary low. The Aussie should be followed, and bought at a certain tactical level (Chart Source: Bloomberg).
The sentiment on commodities is very depressed, that is not a bad point in a contrarian view.
Concerning the futures market, the net short achieved by hedge funds has begun to be satisfying (almost 30% of the open interest) and this, in the past, has always favoured the formation of a primary low. The Aussie should be followed, and bought at a certain tactical level (Chart Source: Bloomberg).
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