NZD/USD bearish below 0.7345 – UOB

FX Strategists at UOB Group see the pair shifting to the bearish outlook on a daily close below 0.7345 in the near term.

Key Quotes

“When we shifted to a neutral stance last Tuesday (02 Aug), we were of the view that NZD is under ‘immediate downward pressure’.

“That said, the pullback since then has been more resilient than expected and the break of the rising trend-line at 0.7375 yesterday suggests that the risk remains tilted to the downside”.

“From here, a NY closing below 0.7345 (June’s high) would indicate that the current neutral phase has moved to bearish. This scenario seems likely unless NZD can move and stay above 0.7410 within these 1 to 2 days. A shift to bearish phase would have an immediate target of 0.7260 followed by 0.7205”.