New Zealand Dollar Sentiment Flip Holds, Supports Gains
NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.49 as 40% of traders are long. Yesterday the ratio was -1.26; 44% of open positions were long. Long positions are 9.1% lower than yesterday and 8.7% below levels seen last week. Short positions are 7.9% higher than yesterday and 30.0% above levels seen last week. Open interest is 0.4% higher than yesterday and 22.2% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the NZDUSD may continue higher. The trading crowd has grown further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
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