New Zealand Dollar Outlook Remains Negative
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NZDUSD – Our retail forex data shows that the majority of traders remain long the New Zealand Dollar versus its US namesake, and a contrarian view of crowd sentiment leaves us firmly in favor of selling into NZD/USD declines.
As with the Australian Dollar, it remains possible that heavily one-sided crowd sentiment may point to an important price extreme and reversal. Yet those turnarounds are only clear in hindsight, and we can’t realistically advocate joining the crowd in getting long at these levels.
See next currency section: XAUUSD - Gold Prices May have Turned the Corner
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.