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NZDUSD –An abrupt shift in retail FX trader sentiment suggests that the New Zealand Dollar set an important short-term low versus the US Dollar.
Trade Implications NZDUSD – Our trader data shows that ‘the crowd’ is now net-short the New Zealand dollar for only the second time since July, 2014, and a contrarian view of sentiment leads us to believe the NZ$ could correct higher through near-term trading. There are currently 1.1 open positions short for every long, and a continued drive towards selling would add further conviction to forecasts for NZDUSD gains.
See next currency section: GBPJPY - British Pound Looks like a Sell versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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