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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. It is worth noting that positions have moderated since last week; a 13 percent drop in total open short positions means that only 61 percent of total interest is short—down from 64 percent last week.
We would nonetheless need to see a much larger shift in trader interest to call for a meaningful turn lower in the relatively high-flying NZD/USD.
See next currency section: XAUUSD - Gold Prices Forecast to Fall Even Further
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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