NZD/USD could breach 0.7170 in the near term – UOB

NZD/USD points to a break below 0.7170 in the next weeks, according to the research team at UOB Group.

Key Quotes

“Instead of trading sideways, NZD broke below the 0.7240 support to touch a low of 0.7204. The subsequent rapid and sharp rebound from the low suggests that the strong downward pressure has eased and the current recovery appears to have scope to extend higher to 0.7260”.

“There is not much to add and we continue to stay bearish NZD and expect a break below the major 0.7170 support. A move below this level would shift the focus towards the 0.7085/90 low seen in early August”.