New Zealand Dollar Bearish Sentiment and Trade Plan
- Based on the latest COT report, non-commercial traders (speculators) have significantly increased theirlong positions in the NZD. This suggests that they are becoming less bearish on the New Zealand dollar and may be anticipating a potential rally.
- Open Positions Retail Sentiment data also shows a decrease in short positions and an increase in long positions among retail traders. This is a contrarian indicator, as retail traders are often wrong at market turning points. Therefore, the increase in long positions among retail traders may suggest that the NZDUSD downside has further to go.
- The NZDUSD pair is currently trading below a triggered BUY level at 0.6157. An upside move and testing this level could make a fine signal to entry point for a short position.