Antipodeans in a technical snapshot – UOB Group

FXStreet (Barcelona) - Analysts at UOB Group, give the technical outlook for NZD/USD and AUD/USD, anticipating the Kiwi to consolidate before heading back higher, and the Aussie to continue its bearish trend on a break below 0.7740.

Key Quotes

NZD/USD: The failure to move above the major 0.7610/15 resistance led to a swift reversal which took out the 0.7500 trailing-stop.”

“While the bullish NZD phase that started early last month has ended, we are not convinced that the current move is the start of a fresh bearish trend. Instead, it is more likely that we will see a period of broad sideway range with strong support at 0.7420 (last week’s low) and equally strong resistance at 0.7610/15.”

“That said, the short-term risk is on the downside and only move back above 0.7550 would indicate that the downward pressure has eased.”

“A clear break below 0.7420 could potentially lead to a swift drop to 0.7315.”

AUD/USD: While the outlook for AUD is still viewed as neutral in a 0.7740/0.7920 range, question is when and how the current consolidation phase will end. Based on the short-term outlook, the downside appears to be more vulnerable but only a clear break below 0.7740 would suggest the start of a sustained mid-term down-move.”

“Strong short-term resistance is at 0.7860 but only above 0.7920 would indicate a higher AUD in the coming weeks.”

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