AUD/USD Overview:

• 37.84% of merchants are lengthy, with a short-to-long ratio of 1.64:1
• Lengthy positions: ↑ 1.20% from yesterday, ↓ 12.53% from final week
• Quick positions: ↑ 1.79% from yesterday, ↑ 15.53% from final week

Retail merchants as a collective are typically pattern fighters, which isn’t optimum when markets are trending. The pattern is your buddy, because the saying goes, and this varieties the idea of why it’s typically helpful to undertake a contrarian method to shopper sentiment positioning.

Retail dealer knowledge for AUD/USD reveals a sizeable shift in the direction of quick positions over the previous week. Whereas lengthy positions have decreased, quick positions have elevated notably. This variation in sentiment, with merchants changing into extra net-short, means that AUD/USD costs might proceed to rise based mostly on contrarian evaluation. The mix of present positioning and up to date modifications strengthens a bullish outlook for AUD/USD.

AUD/USD Each day Chart with Positioning Overlay

Supply: TradingView, ready by Richard Snow

GBP/USD Overview:

• 24.91% of merchants are lengthy, with a short-to-long ratio of three.01:1
• Lengthy positions: ↓ 1.91% from yesterday, ↓ 5.04% from final week
• Quick positions: ↑ 2.84% from yesterday, ↑ 8.96% from final week

For GBP/USD, retail dealer knowledge reveals an much more pronounced quick bias. The variety of merchants going lengthy has decreased each day by day and weekly, whereas quick positions have elevated considerably. This rising net-short sentiment usually signifies that GBP/USD costs might proceed to rise. The present positioning, mixed with current pattern modifications, reinforces a bullish contrarian buying and selling bias for GBP/USD.

GBP/USD Each day Chart with Positioning Overlay

Supply: TradingView, ready by Richard Snow

— Written by Richard Snow for DailyFX.com

Contact and comply with Richard on Twitter: @RichardSnowFX