NZD/USD bearish, now targets 0.7000 – UOB

FX Strategists at UOB Group have shifted their outlook to bearish from neutral on the Kiwi Dollar, now targeting the 0.7000 handle in the near term.

Key Quotes

24-hour view: “The target indicated at 0.7040 was not met as NZD recovered after touching a low of 0.7052. The undertone remains weak and from here, a move to 0.7040 would not be surprising. That said, the next support at 0.7000 is unlikely to come into the picture for now. Only a move back above 0.7095 would indicate that the immediate downward pressure has eased”.

Next 1-3 weeks: “NZD closed below the key 0.7075 level yesterday (NY closing of 0.7064) and this suggests that this pair has moved into a bearish phase. The immediate target is at 0.7000, possibly extending to 0.6950. Resistance is at 0.7095 but only a move back above 0.7140 (stop-loss) would indicate that our bearish expectation is wrong. Positioning wise, those looking to sell may likely to wait for a bounce to 0.7095”.