Fxwirepro call review: add additional short positions in New Zealand Dollar against USD as correction provides opportunity
Source: FxWire Pro - Commentary / 17 Jul 2018 04:41:43 America/New_York
The above weekly chart of New Zealand dollar (Kiwi) against the USD, clearly shows that Kiwi bulls have clearly failed at the former support turned resistance around 0.75 area. The kiwi is currently trading at 0.682 area against the dollar.
Back in March this year, in an article named, “FxWirePro: Sell NZD/USD for attractive risk: reward ratio”, available at https://www.econotimes.com/FxWirePro-Sell-NZD-USD-for-attractive-risk-reward-ratio-1206976 we urged our readers to sell NZD/USD at the then current rate of 0.725 (which is near the range-high) as Kiwi has been struggling in a range of 700-800 pips with a target of 0.675 area.
Later in a follow-up review, we extended the target from 0.675 to 0.65 area, as we suspected that the current semi-dovish (no hurry to raise rates) stance of the Reserve bank of New Zealand (RBNZ) is helpful to our call.
And finally, based on our latest calculations, we extended the short side target from 0.65 area to 2015 bottom around 0.62 area, https://www.econotimes.com/FxWirePro-Call-Review-Kiwi-likely-to-test-its-2015-bottom-against-USD-1392243
In this review, we would like to not only urge our readers to maintain the current short positions but add fresh positions as sellers remain large around 0.705 area. In addition to that, we believe that the trade battles would ultimately be negative for the kiwi dollar as New Zealand is an exporting economy. The strong dollar is also like to weigh.© FxWire Pro 2019. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.