New Zealand Dollar May have Set Significant Low
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NZDUSD –A substantial shift in retail forex trader sentiment warns that the New Zealand Dollar may have set an important short-term low, and our market cycles specialist points out that a close above $0.6700 would warn that a larger retracement is at hand.
Traders remain marginally net-long the NZD, but an 85 percent week-on-week surge in short positions leaves our Speculative Sentiment Index ratio at its least net-long since the pair traded near $0.7500. We see this as reason the New Zealand Dollar may be at a key turning point.
See next currency section: XAUUSD - Gold Prices Lose their Luster, Watch for Further Declines
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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