NZD/USD still targets 0.6975 – UOB

The research team at UOB Group still sees NZD/USD testing the 0.6975 level in the next weeks.

Key Quotes

“NZD rebounded strongly without testing the major 0.7000 support (low of 0.7011). While a temporary bottom is likely in place, it is premature to expect a sustained recovery. It is more likely that NZD would consolidate its recent sharp drop and trade sideways at these lower levels”.

“There is no change to current bearish outlook in NZD. The immediate target is at 0.6975 with a stop-loss at 0.7125. On a shorter-term note, the recent sharp drop is oversold and this may lead to a couple of days of consolidation first (before moving lower again)”.