New Zealand Dollar Outlook Remains Modestly Positive
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.07 as 48% of traders are long. Yesterday the ratio was -1.04; 49% of open positions were long. Long positions are 13.0% lower than yesterday and 4.3% below levels seen last week. Short positions are 10.3% lower than yesterday and 42.2% below levels seen last week. Open interest is 11.7% lower than yesterday and 8.5% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the NZDUSD may continue higher. The trading crowd has grown further net-short 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 Uncertain versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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