NZD/USD could still slip back to 0.6590 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted the Kiwi Dollar could still depreciate to the 0.6590 region vs. the greenback in the next weeks.

Key Quotes

24-hour view: “In yesterday’s update, we cited that ‘it is too early to conclude that the recent decline in NZD has come to an end... rallies are limited to 0.6650’. On Mon, NZD only touched a high of 0.6653 before paring gains to close at 0.6630. Indicators suggest that NZD is not prepared for a big move either ways, so a sideways pattern looks more likely for today. Expect 0.6610 – 0.6655 range.”

Next 1-3 weeks: “As highlighted, NZD has found a short-term top and the current pullback could test 0.6590. Looking ahead, if NZD were to breach 0.6590, the pullback could extend to 0.6555. On the upside, only a move above 0.6690 (‘strong resistance’ level previously at 0.6730) would suggest the current downward pressure has eased.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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