NZD/USD oversold, still room to test 0.7035 – UOB

Strategists at UOB Group believe NZD/USD could still slip towards 0.7035 despite its oversold condition.

Key Quotes

“The overnight low of 0.7070 fell short of the target indicated at 0.7060 yesterday. The strong rebound from the low suggests that a temporary bottom is in place and the recovery appears to have scope to extend higher”.

“As highlighted yesterday, while the outlook for NZD has shifted to bearish, the recent decline is clearly oversold. That said, further extension to 0.7035 is not ruled out and only a move back above 0.7230 would indicate that a short-term low is in place”.