FxWirePro Call Review: Maintain short positions in NZD/USD; target extended to 0.59

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 0.651 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, based on our latest calculations, we would like to extend our final target from 0.62 area to 0.59 area. The current global trade dynamics, which we believe would have more of a knock-on effect on NZD via emerging markets exposure than direct trade fallouts, along with a dovish RBNZ, and declining dairy price remain all positive to our outlook.

However, temporary bounce backs from target levels such as 0.65 area, 0.62 area are highly likely. Same way further extension to the final bearish target can’t be ruled out too.