NZD/USD: is a correction, not a reversal – UOB

FXStreet (Guatemala) – Analysts at UOB Group explained that while the bearish phase in NZD that started in early January has likely ended, the strong up-move from the low of 0.6348 is
viewed as a corrective rebound and not the start of a bullish reversal.

Key Quotes:

“The ideal “retracement target” is at 0.6610 but the quick and rapid drop from the recent high of 0.6558 does not bode well for NZD.”

“Furthermore, daily MACD is still in negative territory and this suggests that NZD is not out of the woods yet.”

“From here, a clear break below 0.6410 will greatly increase the odds for NZD breaking below 0.6348 for a move towards the major support near 0.6300.”

“Overall, this pair has to reclaim 0.6555/60 in
the next few days or the downside risk will continue to increase.”

Analysts at UOB Group explained that while the bearish phase in NZD that started in early January has likely ended, the strong up-move from the low of 0.6348 is viewed as a corrective rebound and not the start of a bullish reversal.

(Market News Provided by FXstreet)