NZD/USD sticks to the bearish stance – UOB

FX Strategists at UOB Group remain bearish on the Kiwi Dollar, noting that NZD/USD could grind lower towards 0.7145.

Key Quotes

24-hour view: “We underestimated NZD’s weakness as the target indicated at 0.7255 was exceeded with a low of 0.7230. The lack of any significant recovery suggests that the immediate bias is still on the downside even though oversold conditions may limit any further weakness to 0.7200/05, the low in July. On the upside, resistance is at 0.7255 followed by 0.7285. Yesterday’s peak at 0.7311 is not expected to come into the picture, at least for the next few days”.

Next 1-3 weeks: “Despite the perceived low odds, NZD continues with its decline and the revised target at 0.7205 appears to be within reach. A break of this level would shift the focus to 0.7145. Stop-loss is lowered to 0.7310 from 0.7350”.