NZD/USD eyes next support at 0.7010 – UOB

NZD/USD keeps the bearish outlook for the time being, now focusing on the support area around 0.7010, according to analysts at UOB Group.

Key Quotes

“NZD continues to surprise us by not only taking out the 0.7110 support but extended its decline and edged below the major level of 0.7050 (overnight low of 0.7048)”.

“While the decline is very over-extended now, only a move back above 0.7160 (adjusted from 0.7205) would indicate that the current bearish phase has ended”.

“Otherwise, another leg lower towards the next major level of 0.7010 could not be ruled out just yet (0.7010 is the rising trend-line support connecting the two major lows seen in January and May)”.