New Zealand Dollar Forecast Unclear
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at 1.17 as 54% of traders are long. Yesterday the ratio was -1.33; 43% of open positions were long. Long positions are 3.5% higher than yesterday and 12.2% below levels seen last week. Short positions are 33.7% lower than yesterday and 3.3% above levels seen last week. Open interest is 17.8% lower than yesterday and 13.4% below 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 flipped from net-short to net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: GBPJPY - British Pound Likely to Fall Further versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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