FxWirePro Call Review: Add short positions in NZD/USD targeting 0.64 area

In an article published in early November, named, “FxWirePro: Sellers might push kiwi to 0.64 against USD on dovish RBNZ”, available at http://www.econotimes.com/FxWirePro-Sellers-might-push-kiwi-to-064-against-USD-on-dovish-RBNZ-995829 we suggested that kiwi is likely to drop towards 0.64 area. However, we cited two different ways that target could get reached,

“While Kiwi is likely to remain dovish, there are two possible scenarios for further price decline,

• Sell breakout: in this case, kiwi breaks below 0.685 support area and plunges rapidly. In this case, we recommend taking positions after a breakout.
   
• Sell Resistance: Since the kiwi has declined more than 600 pips since September; a correction is due and before a break kiwi moves higher. In this case, we would recommend selling slightly above or close to 0.70 area.”

Since then, the kiwi has corrected riding on optimism that Adrian Orr, CEO of New Zealand Superannuation Fund will be the next RBNZ governor and is likely to be more hawkish than his predecessor. This has given us the opportunity to play the sell resistance.

Trading idea:

We recommend selling kiwi at 0.705 area and at every 50 pips from there until 0.725 with a target of 0.64 and stop loss at 0.745.