New Zealand Dollar Forecast to Fall Further
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NZDUSD – The ratio of long to short positions in the NZDUSD stands at 1.70 as 63% of traders are long. Yesterday the ratio was 1.67; 63% of open positions were long. Long positions are 23.5% higher than yesterday and 15.6% above levels seen last week. Short positions are 21.0% higher than yesterday and 43.1% above levels seen last week. Open interest is 22.6% higher than yesterday and 11.3% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the NZDUSD may continue lower. The trading crowd has grown further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: GBPJPY - British Pound Outlook Turns Bearish versus Japanese 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.