NZD/USD – Retail forex trading crowds remain heavily long the New Zealand Dollar versus its US namesake and a contrarian view of sentiment acts as steady signal that the pair may continue lower. Long positions are up a further 5 percent since last week while short positions are roughly unchanged. We see little reason to stray from our long-standing NZD-bearish trading bias.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com.