New Zealand Dollar Sentiment Points to Weakness
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at 1.63 as 62% of traders are long. Yesterday the ratio was 1.63; 62% of open positions were long. Long positions are 5.5% higher than yesterday and 25.8% above levels seen last week. Short positions are 5.3% higher than yesterday and 35.3% below levels seen last week. Open interest is 5.4% higher than yesterday and 9.5% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the NZDUSD may continue lower. The trading crowd has grown further net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section: GBPJPY - British Pound Forecast to Gain versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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