New Zealand Dollar in Position to Continue Lower
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at 1.90 as 66% of traders are long. Yesterday the ratio was 2.09; 68% of open positions were long. Long positions are 0.4% lower than yesterday and 10.9% below levels seen last week. Short positions are 9.4% higher than yesterday and 86.8% above levels seen last week. Open interest is 2.7% higher than yesterday and 32.1% above 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 less net-long from yesterday and last week. We maintain a contrarian bearish trading bias.
See next currency section: GBPJPY - British Pound Forecast to Strengthen against Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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