NZD/USD eyes on 0.7190 near term – UOB

The Kiwi Dollar faces the probability of a visit to the 0.7190 area in the next weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for sideway trading was wrong as NZD plummeted to a low of 0.7260. Strong downward momentum suggests further downside risk towards the next support at 0.7220 (0.7240 is a relatively strong intervening support). On the upside, 0.7295 is expected to be strong enough to cap any intraday recovery (minor resistance is at 0.7280)”.

Next 1-3 weeks: “Our recent expectation for consolidation was proven wrong as NZD plunged to a low of 0.7260 yesterday. The rapid pick-up in downward momentum has shifted the immediate pressure to the downside. From here, a deeper down-move towards 0.7190 would not be surprising but at this stage, a break of last month’s 0.7155 low seems unlikely. Overall, NZD is expected to remain under pressure unless it can reclaim 0.7330”.