FxWirePro Call Review: Kiwi dollar likely to correct further; maintain short positions

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 065 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.

Though the call is still in the money, the kiwi dollar has reversed course after reaching as low as 0.685 area against the USD and currently trading at 0.705 area. There is also a possibility that the kiwi dollar would strengthen further.  However, we would like to urge readers to maintain short positions in NZD/USD and re-enter at higher prices. We expect sellers to start emerging around 0.715 area. The 0.65 target area is likely to get revised lower.