New Zealand Dollar Remains in Fairly Clear Downtrend
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at 2.87 as 74% of traders are long. Yesterday the ratio was 3.37; 77% of open positions were long. Long positions are 10.8% lower than yesterday and 10.5% below levels seen last week. Short positions are 4.5% higher than yesterday and 15.2% above levels seen last week. Open interest is 7.3% lower than yesterday and 1.8% 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 less net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: GBPJPY - British Pound Forecast to Appreciate versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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