NZD is -60 in fundamental score telling that it will be very weak. Yet in COT it is showing that hedge funds are buying it like crazy.
All the technical are showing that NZD is getting weaker in almost all major pairs ( NZDUSD, GBPZD , NZDJPY, EURNZD).
I am writing this on satudray as new numbers of logikfx were released only few hours ago.
Please advise how such a situation should be handled. Is it a great buying opportunity or great selling selling opportunity.
Thanks. That explains it. Use it when they are aligned together
How I prefer to use the COT with the currency strength meter (fundamental score) is to make sure both are aligned e.g. if GBP was strong fundamentally and hedge funds were buying it, this would confirm that I wouldn't be trading against the market or big money. This is my preferred way to analyse it (requires patience and quite a conservative approach) however it's up to you how you want to interpret the data.