NZD/USD keeps the bullish stance unchanged – UOB

The outlook on the Kiwi Dollar remains tilted to the bullish camp in the near term, suggested FX Strategists at UOB Group.

Key Quotes

“The sharp decline appears to have room to extend lower but 0.7095 is a very strong support and is unlikely to yield so easily (next support at 0.7070). That said, any rebound is expected to face stiff resistance at 0.7175 and the 0.7215 high seen early yesterday is unlikely to come into the picture for now”.

“The sudden and sharp swing lower yesterday certainly does not bode well for the current bullish outlook for NZD. The rapid deceleration has increased the risk of a short-term top but confirmation is only upon a break below 0.7095. Such a move would not be surprising unless NZD can reclaim 0.7200 within these 1 to 2 days”.