NZD/USD showing signs of potential basing – UOB

In opinion of FX Strategists at UOB Group, the Kiwi Dollar could be attempting to carve a base for the time being.

Key Quotes

“NZD rebounded as expected but did not have enough momentum to move above the 0.6950 resistance (exact high of 0.6950 yesterday). The positive undertone has eased and this pair is expected to trade sideways from here, likely between 0.6900 and 0.6950”.

“As noted last Friday, the pace of the decline in NZD has slowed and it is getting increasingly likely that this pair is trying to form a short-term base. That said, it’s early days yet even though the odds for a break below last December’s low near 0.6860/65 have diminished. In the meanwhile, NZD is expected to trade sideways at these lower levels, likely within a 0.6880/0.6980 range”.