New Zealand Dollar Stumbles, Forecast Unclear
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.06 as 48% of traders are long. Yesterday the ratio was -1.61; 38% of open positions were long. Long positions are 13.8% higher than yesterday and 37.8% above levels seen last week. Short positions are 24.7% lower than yesterday and 12.1% below levels seen last week. Open interest is 9.9% lower than yesterday and 17.5% above 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 less net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: GBPJPY - Pullback in British Pound Clouds Outlook versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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