NZD/USD bearish on a close below 0.7180 – UOB

Strategists at UOB Group expect NZD/USD to extend its downside momentum on a daily close below 0.7180.

Key Quotes

“The 0.7230 support was not as strong as expected as NZD broke below this level and tested the next support at 0.7180 (low of 0.7178). Despite the rebound from the low, the undertone is still weak and a clear break of 0.7175/80 could lead to further weakness to 0.7150. Resistance is at 0.7255 followed by 0.7300”.

“While we expected the corrective pull-back in NZD to extend lower, the decline has been more impulsive than expected. From here, a daily closing below 0.7180 would indicate that NZD has started on a bearish phase (targeting a move to 0.7110). Overall, NZD is expected to stay under pressure unless it can reclaim 0.7300 within these few days”.