NZD/USD still targets 0.7150 – UOB

In opinion of FX Strategists at UOB Group, the pair’s outlook remains bearish with an immediate target at the mid-0.7100s in the next weeks.

Key Quotes

24-hour view: “NZD traded sideways as expected albeit at a narrower range than anticipated. The quick drop to a low of 0.7222 after NY close has shifted the immediate pressure to downside but any weakness from here is expected to encounter strong support at 0.7215 (next support at 0.7195). On the upside, resistance is at 0.7255 followed by 0.7275”.

Next 1-3 weeks: “The strong rebound in NZD last Friday certainly does not bode well for our current bearish view (see update on 24 Aug). However, only a move above the strong 0.7275 level (stop-loss level unchanged) would indicate that our view is wrong. Until then, another push lower to 0.7150 is not ruled out just yet even though the odds for such a move have diminished”.