NZD/USD still bearish, downside appears limited – UOB

In opinion of analysts at UOB Group, NZD/USD’s stance remains bearish although further downside appears limited for the time being.

Key Quotes

“While NZD basically closed unchanged on Friday, it traversed a range of 0.7110/0.7200, much wider than the expected sideway trading range of 0.7130/0.7170. The intraday outlook is rather mixed and further choppy trading is expected but a sustained move beyond last Friday's 0.7110/0.7200 range seems unlikely”.

“As highlighted in recent updates, while the outlook for NZD is bearish, the downside potential is limited to 0.7110. NZD dipped last Friday and touched 0.7110 exactly before recovering quickly. While the outlook is still deemed as bearish, the odds for a sustained move below 0.7110 appear to be quite slim. On the upside, a move back above 0.7205 would indicate that a short-term low is in place”.