New Zealand Dollar Cross Pick 06.05.09

[B]My picks:[/B] Long NZD/USD
[B]Expertise:[/B] Fundamentals and Technicals
[B]Average Time Frame of Trades:[/B] 2 - 10 Days

The New Zealand dollar fell sharply against the greenback after reaching a fresh trend high of 0.6598 earlier this week, and the NZD/USD may continue to push higher over the following as economists forecast the Reserve Bank of New Zealand to hold the benchmark interest rate steady at the record-low of 2.50% next week. The shift in the outlook for future policy favors a bullish outlook for the kiwi, and I have placed a long entry as I expect the pair to retrace the sell-off from the yearly high. I placed a long NZD/USD entry order at 0.6381, the 6/4 high, and have set my target at the yearly high of 0.6598, with the stop at 0.6330, the 61.8% Fib of the August decline.