AXY (Aussie Dollar Index) Ok, the Aussie currently is currently getting rejected from the major resistance level. there is no real harmonic pattern to draw so here is the COT analysis.
i think the aussie might be making moves to switch sides the open interest increased by 3500 orders the Commercial Longs reduced their positions by 4500 orders while the commercial shorts increased their orders by 5600 orders. So, unlike The Cables index the BXY the AXY looks to be adding orders to their respective opposite sides looking to switch sides. the Non-Commercials are looking at the same. NonCom longs increased their position long by 3300 orders while the shorts reduced thier side by 800 orders. Now lets remember the Non-Commercials are for profit and pay taxes as such, to where the Commercials are hedging for rate locks and profit protection from actual business they conduct inter-business-ly (if thats even a word)
so as it stands for the Aussie the Net numbers are as follows:
Commercials- Current = 43,641 // Previous = 53,852
Non-Coms - Current= (36,575) // Previous- (40,791)
So, i reckon if you have any trades against the Aussie it might be a wise decesion to close them out and book profit or take small loss, i dont see the Aussie Weakening this coming week. we might see some minor drawdown but thats about the extent of it the the commercials are switching sides with the non-commercials. remember this is a long process becasue big business and banks just cant switch sides over-night it would crash the world economy so look at it as each week they take a big step toward the Zero Line and then swich sides. during this process we will see that pair get stronger and stronger and before you know it youre in a bull trend when everyone can see it then its time to switch sides again.
