NZD/USD a short term top could be in place – UOB

The research team at UOB Group sees the likeliness that NZD/USD could have placed a short term top.

Key Quotes

“Instead of trading sideways as expected, NZD dropped sharply to a low of 0.7384. The decline appears to be running ahead of itself and further sustained weakness is not expected from here”.

“The sharp decline in NZD yesterday was unexpected and the overnight low of 0.7384 came very close to our stop-loss at 0.7370. Unless NZD can move and stay above 0.7480 within these 1 to 2 days, a break below 0.7370 would not be surprising. In other words, it is increasingly likely that a shortterm top is in place”.