New Zealand Dollar Gains May Slow
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Trade Implications NZDUSD – Our retail sample shows that the majority of traders have remained long the NZDUSD since it traded below $0.8600 through July—providing consistent contrarian signal to sell into weakness. Despite the recent Kiwi$ rally, we’ve actually seen positions turn further long since last week; there are now 1.9 trades long for every short. There’s risk of further USD weakness, but the NZD seems an unattractive candidate to play a US Dollar reversal.
See next currency section: GBPJPY - British Pound at Risk of Break Lower versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.