DislikedIts on just the aussie without the US dollar in the mix. (Australian dollar futures)............. Here's the caveat : the US dollar index COT is also extreme bearish by the commercials too. Might skew the AUD/USD pair as they both head south. Hmmmmmm ! Something to consider.Ignored
So I'm posting it again with the link to Kathy Lien's article (http://www.investopedia.com/articles/forex/05/COTreport.asp#axzz25o24vsuC):
QuoteDislikedUsing the COT Report
In using the COT report, commercial positioning is less relevant than noncommercial positioning because the majority of commercial currency trading is done in the spot currency market, so any commercial futures positions are highly unlikely to give an accurate representation of real market positioning. Noncommercial data, on the other hand, is more reliable as it captures traders' positions in a specific market. There are three primary premises on which to base trading with the COT...