Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
NZDUSD – Retail FX traders remain long the New Zealand Dollar versus the US Dollar, which serves as steady contrarian signal the pair may continue lower. Yet we see early signs of turnaround.
Trade Implications NZDUSD – The trading crowd first turned net-long the Kiwi as it traded below $0.8600, and positioning has been relatively consistent ever since. In fact the ratio of long to short positions remains almost exactly unchanged on the week. Yet clear signs of turnaround in the broader commodity bloc warn against selling aggressively into NZDUSD gains. We’ll need to see a renewed turn towards retail NZD-buying before calling for a resumption of the larger downtrend.
See next currency section: GBPJPY – Sterling Remains a Buy versus the Japanese Yen.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at https://www.twitter.com/DRodriguezFX
Facebook at https://www.Facebook.com/DRodriguezFX