FX Strategists at UOB Group remain bearish on the Kiwi Dollar and believe it could drop below 0.6900 in the next weeks.
Key Quotes
24-hour view: “The sharp decline in NZD yesterday was unexpected and came as a surprise. While the down-move appears to be running ahead of itself, a dip below the major 0.6900 level seems likely. However, the next support at 0.6875 is likely out of reach for now. Resistance is at 0.6940 followed by 0.6960. The 0.6975 high seen early yesterday is not expected to be threatened”.
Next 1-3 weeks: “We highlighted yesterday that the odds for a NZD weakness below major 0.6900 support have diminished. The subsequent sharp decline that hit an overnight low of 0.6911 came as a surprise and has reinvigorated the flagging downward momentum. That said, indicators are still at rather oversold level and while a move below 0.6900 seems likely now, the next support at 0.6850 could be out of reach. On the upside, the ‘stop-loss’ for our bearish view is adjusted to 0.6975 (from 0.7005 previously)”.
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