Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
NZDUSD – Extremely one-sided forex positions warn that the New Zealand Dollar may soon set a significant price and sentiment extreme.
Trade Implications – NZDUSD: Retail traders recently hit their most short NZDUSD on record. We typically go against the crowd; if everyone’s short we prefer to be long. Yet extremely one-sided positions often warn of the top.
Short interest is now nearly half of what it was at its recent peak, and early signs of crowd capitulation at these levels warn that the turn is near. Our Senior Technical Strategist writes that the NZD will need to move below resistance-turned-support at $0.8450 to suggest a “tradable top” is in place.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX