New Zealand Dollar in Position to Gain
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.13 as 47% of traders are long. Yesterday the ratio was 1.56; 61% of open positions were long. Long positions are 1.5% lower than yesterday and 15.7% below levels seen last week. Short positions are 73.2% higher than yesterday and 58.8% above levels seen last week. Open interest is 27.7% higher than yesterday and 0.7% 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 flipped from net-long to net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
See next currency section: GBPJPY - British Pound Forecast to Rally against Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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