New Zealand Dollar Forecast to Rally Further

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New Zealand Dollar Forecast to Rally Further

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NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.91 as 34% of traders are long. Yesterday the ratio was -1.53; 40% of open positions were long. Long positions are 9.8% lower than yesterday and 23.7% below levels seen last week. Short positions are 13.0% higher than yesterday and 74.4% above levels seen last week. Open interest is 4.0% higher than yesterday and 14.7% 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 but unchanged since last week. The combination of current sentiment and recent changes gives a further bullish trading bias.

See next currency section: GBPJPY - British Pound Targets Fresh Lows versus Yen

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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