FXWirePro: Kiwi to test 0.7 resistance against Dollar

New Zealand Dollar has been among the worst hit developed market currencies this year. While Reserve bank of New Zealand might ease policy rates further to provide support to the ailing economy, hit hard by slowdown in China and falling Dairy prices.

In spite of that, we are increasingly waking up to the idea that New Zealand Dollar, known as Kiwi might go for larger correction against Dollar.

Why?

• Next RBNZ meeting is scheduled on 10^th September, 2015, which leaves us with 13 trading days before the meeting, which is ample for a larger comeback/correction, given broad based weakness in Dollar.
  
  
• It is increasingly looking that despite break a few times, Kiwi bulls are not ready to give up 0.65 support area without larger correction.
  
  
• 14.8% rise in dairy prices at last auction has given Kiwi some breathing room. Next auction is scheduled on 1^st September.

Trade idea -

• Buy Kiwi at current price and at dips, with stop loss around 0.65 area and target of 0.678 and 0.693 area.