Thursday, February 26, 2015

New Zealand Dollar Rally May be Cut Short



New Zealand Dollar Rally May be Cut Short


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NZDUSD – The ratio of long to short positions in the NZDUSD stands at -1.41 as 42% of traders are long. Yesterday the ratio was -1.54; 39% of open positions were long. Long positions are 3.6% higher than yesterday and 12.1% below levels seen last week. Short positions are 5.4% lower than yesterday and 11.6% above levels seen last week. Open interest is 1.9% lower than yesterday and 7.9% 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 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: GBPJPY – British Pound May Hold Gains versus Japanese Yen



Written by David Rodriguez, Quantitative Strategist for DailyFX.com


New Zealand Dollar Rally May be Cut Short



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New Zealand Dollar Rally May be Cut Short

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