NZD/USD pullbacks limited around 0.7200 – UOB

In view of the research team at UOB Group, occasional retracements in NZD/USD should find support around the 0.7200 in the near term.

Key Quotes

“NZD bounced smartly from a low of 0.7255 but the recovery did not threaten the major 0.7340 resistance (high of 0.7325). The up-move appears to have scope to extend higher but at this stage, a move beyond 0.7340 still seems unlikely”.

“While the stop-loss for our bearish NZD view is still intact at 0.7340, the price action over the past few days clearly lacks momentum and the downside potential still seems to be limited to a test of 0.7200. On a shorter-term note, 0.7235/40 is already a strong support”.