Market Sentiment Data Send Bearish Signal for NZD/USD

Market sentiment evaluation:

  • Market confidence has dropped a bit of however the main themes of stronger US shares and a firmer US Greenback will probably re-emerge.
  • Within the meantime, IG consumer sentiment information are sending out a bearish sign for NZD/USD forward of one other anticipated rate of interest enhance in New Zealand tomorrow.

Dealer confidence stays excessive

Dealer confidence continues to be lofty within the markets and that ought to be sure that the foremost themes of stronger US inventory indexes and a firmer US Greenback reassert themselves after a pause for breath. Because the EUR/USD chart under reveals, the pair is modestly greater Tuesday however the downward development stays intact, with the USD helped by the re-nomination of Jay Powell as Fed chairman.

EUR/USD Worth Chart, Day by day Timeframe (Might 20 – November 23, 2021)

Latest EUR/USD price chart

Chart by IG (You’ll be able to click on on it for a bigger picture)

Commerce Gold: Prime Gold Buying and selling Methods and Ideas

Bearish NZD/USD

Turning to the IG consumer positioning information, the numbers are at the moment sending out a bearish sign for NZD/USD although the Reserve Financial institution of New Zealand is broadly anticipated to observe up its October curiosity charge enhance with one other 25-basis-point increase at its assembly Wednesday.

The retail dealer information present 54.91% of merchants are net-long, with the ratio of merchants lengthy to quick at 1.22 to 1. The variety of merchants net-long is 1.49% decrease than yesterday however 30.95% greater than final week, whereas the variety of merchants net-short is 6.87% decrease than yesterday and 23.88% decrease than final week.

Right here at DailyFX, we sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests NZD/USD could proceed to fall. Merchants are additional net-long than yesterday and final week, and the mixture of present sentiment and up to date modifications offers us a stronger NZD/USD-bearish contrarian buying and selling bias.

NZD/USD client positioning

On this webinar, I appeared on the tendencies within the main forex, commodity and inventory markets, on the forward-looking information on the financial calendar this week, on the IG Shopper Sentiment web page on the DailyFX web site, and on the IG Shopper Sentiment reviews that accompany it.

— Written by Martin Essex, Analyst

Be at liberty to contact me on Twitter @MartinSEssex


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