New Zealand Dollar Forecast Firmly in Favor of Depreciation
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at 2.75 as 73% of traders are long. Yesterday the ratio was 3.10; 76% of open positions were long. Long positions are 5.4% lower than yesterday and 8.3% above levels seen last week. Short positions are 6.9% higher than yesterday and 17.0% above levels seen last week.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. Yet the heavily one-sided standing position leaves our bearish trading bias intact.
See next currency section: GBPJPY - British Pound Expected to Continue Higher versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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