Bias: Long Position
Rationale:
Based on the latest Commitment of Traders (COT) reports, there is a positive shift in market sentiment:
Increase in AUD Buying: The previous and current week's COT reports indicate an increase in AUD buying activity.
Reduction in AUD Short Positions: There is a noticeable decrease in existing short positions on the AUD.
These factors suggest a bullish outlook for the AUDUSD pair, as traders seem more confident in the Australian dollar's potential for appreciation.
Trading Plan:
I am looking to initiate a long position in the AUDUSD pair. My strategy involves waiting for the pair to reach a key support level or resistance level identified on the chart. This approach aims to capitalize on potential upward momentum while minimizing downside risk.
Rationale:
Based on the latest Commitment of Traders (COT) reports, there is a positive shift in market sentiment:
Increase in AUD Buying: The previous and current week's COT reports indicate an increase in AUD buying activity.
Reduction in AUD Short Positions: There is a noticeable decrease in existing short positions on the AUD.
These factors suggest a bullish outlook for the AUDUSD pair, as traders seem more confident in the Australian dollar's potential for appreciation.
Trading Plan:
I am looking to initiate a long position in the AUDUSD pair. My strategy involves waiting for the pair to reach a key support level or resistance level identified on the chart. This approach aims to capitalize on potential upward momentum while minimizing downside risk.