New Zealand Dollar Likely to Rally Further
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NZDUSD – A substantive shift in retail forex trader sentiment warns that the New Zealand Dollar may trade to further highs through near-term trading. The majority of traders in our sample had remained long the NZD/USD since the pair crossed below $0.75 in May, but the data now shows that ‘the crowd’ turned net-short as it rallied above $0.65 two weeks ago.
As long as crowds continue to sell, we shall remain in favor of buying into NZD/USD rallies.
See next currency section: XAUUSD - Gold Forecast to Gain Further versus US Dollar
--- 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.