Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Market Sentiment Data Send Bearish Signal for NZD/USD | Webinar

Market Sentiment Data Send Bearish Signal for NZD/USD | Webinar

What's on this page

Market sentiment analysis:

  • Market confidence has dropped a little but the major themes of stronger US stocks and a firmer US Dollar will likely re-emerge.
  • In the meantime, IG client sentiment data are sending out a bearish signal for NZD/USD ahead of another expected interest rate increase in New Zealand tomorrow.

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

Trader confidence remains high

Trader confidence is still lofty in the markets and that should ensure that the major themes of stronger US stock indexes and a firmer US Dollar reassert themselves after a pause for breath. As the EUR/USD chart below shows, the pair is modestly higher Tuesday but the downward trend remains intact, with the USD helped by the re-nomination of Jay Powell as Fed chairman.

EUR/USD Price Chart, Daily Timeframe (May 20 – November 23, 2021)

Latest EUR/USD price chart

Chart by IG (You can click on it for a larger image)

How to Trade Gold: Top Gold Trading Strategies and Tips

Bearish NZD/USD

Turning to the IG client positioning data, the numbers are currently sending out a bearish signal for NZD/USD even though the Reserve Bank of New Zealand is widely expected to follow up its October interest rate increase with another 25-basis-point raise at its meeting Wednesday.

The retail trader data show 54.91% of traders are net-long, with the ratio of traders long to short at 1.22 to 1. The number of traders net-long is 1.49% lower than yesterday but 30.95% higher than last week, while the number of traders net-short is 6.87% lower than yesterday and 23.88% lower than last week.

Here at DailyFX, we typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests NZD/USD may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger NZD/USD-bearish contrarian trading bias.

NZD/USD client positioning

In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it.

Top Trading Opportunities in this Quarter
Top Trading Opportunities in this Quarter
Recommended by Martin Essex, MSTA
See the DailyFX Team’s Top Q4 Trading Setups in Our Guide
Get My Guide

--- Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.