NZD/USD downside pressure mitigated above 0.7285 – UOB

FX Strategists at UOB Group suggested a breakout of the 0.7285 level should alleviate downside pressure in spot.

Key Quotes

24-hour view: “NZD traded sideways as expected albeit at a slightly lower and narrower range than expected. Indicators remain ‘neutral’ and further sideway trading is expected, likely between 0.7200 and 0.7260”.

Next 1-3 weeks: “NZD touched a high of 0.7278 last Friday, not far from the key resistance indicated at 0.7285. As highlighted, only a break of 0.7285 would indicate that the recent downward pressure has eased. Until then, another push lower towards the major 0.7176 support (neck-line of a potential double-top formation) is not ruled out but the odds for such a move are not high”.