The currency with the strongest bullish bias would be the USD, with Institutions adding more long contracts and at the same time also reducing the amount of short contracts that they were holding onto.The currency with the strongest bearish bias would be the NZD, AUD and following behind the JPY. Institutions are currently holding more shorts and also adding alot more short positions.The best plays this week would be to:1) Long USDJPY2) Short AUDUSD and NZDUSD.
Above is an example on how we'll utilize this information from the COT report (AUD weakest, USD strongest) to play a technical move on AUD/USD for the rest of the week. We can see that AUD/USD is below the 34 Moving Average and also experiencing bearish pressure from the Ichimoku cloud. At the same time, we can see 1st resistance is at 0.6586 which would be a good entry point to get in on this bearish move.
