NZD/USD neutral near term, rangebound likely – UOB

NZD/USD faces a potential extension of the consolidative theme between 0.7240 and 0.7380, according to analysts at UOB Group.

Key Quotes

“NZD moved above the strong 0.7340 resistance (overnight high of 0.7358) but dropped sharply after the release of the weaker than expected GDT auction results. The down-move appears to have scope to extend lower but any weakness is not expected to move significantly below the strong 0.7280 support”.

“The breach of the stop-loss at 0.7340 indicates that the recent bearish phase has ended. The outlook for NZD from here is unclear and we prefer to hold a neutral view and expect this pair to trade listlessly between 0.7240 and 0.7380. Looking further ahead, the downside appears to be more vulnerable but a sustained weakness is likely only if there is a break below the very strong 0.7220/40 support zone”.