New Zealand Dollar Losses Forecast to Continue
NZDUSD - The ratio of long to short positions in the NZDUSD stands at 2.27 as 69% of traders are long. Yesterday the ratio was 1.14; 53% of open positions were long. Long positions are 15.3% higher than yesterday and 5.0% above levels seen last week. Short positions are 42.0% lower than yesterday and 24.4% below levels seen last week. Open interest is 11.5% lower than yesterday and 1.0% 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 further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
To contact Christopher Vecchio, e-mail email@example.com
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.