New Zealand Dollar in Position to Strengthen
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NZDUSD – The majority of retail FX traders in our sample remain short the New Zealand Dollar versus the US Dollar, and a contrarian view of crowd sentiment leaves us in favor of buying into NZD/USD gains. The ratio of open short positions to those long is a notable 1.5 to 1—near the most extreme since July, 2014.
Until we see a marked shift in crowd positions we see little reason to abandon our NZD-bullish trading bias.
See next currency section: XAUUSD - Gold Prices Likely to Fall Further
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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