NZD/USD: Sustained recovery looks unlikely - UOB

Pablo Piovano FXStreet

In light of the recent price action in NZD/USD, FX Strategists at UOB Group still do not see a sustainable recovery in the pair.

Key Quotes

24-hour view: “Our expectation for “further NZD weakness towards 0.6270” was incorrect as it staged a surprisingly robust rebound to 0.6335. The price action suggests yesterday’s 0.6284 low could be a short-term bottom. That said, it is too soon to expect a significant rebound. For today, NZD is more likely to trade sideways, expected to be within a 0.6285/0.9335 range.”

Next 1-3 weeks: “NZD popped above our ‘strong resistance’ level of 0.6330 yesterday (high of 0.6335). While downward momentum has eased, it is too early to expect a sustained recovery. From here, NZD is expected to trade sideways between 0.6270 and 0.6350. Looking forward, if NZD were to register a NY closing below 0.6270, it would indicate the next down-leg in NZD towards 0.6240 (and possibly lower) has started.”

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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