New Zealand Dollar Could Rally Further as Sentiment Turns More Bearish
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.73 as 37% of traders are long. Yesterday the ratio was -1.82; 35% of open positions were long. Long positions are 0.9% higher than yesterday and 9.6% below levels seen last week. Short positions are 4.1% lower than yesterday and 0.1% below levels seen last week. Open interest is 2.3% lower than yesterday and 6.9% below 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 less net-short from yesterday but further short since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: XAUUSD – Gold’s Lackluster Performance Sees Shorts Wind down Positions for 2015
--- Written by Christopher Vecchio, Currency Strategist
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