NZD/USD: Break below 0.6410 would indicate fresh bearish phase – UOB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Research Team at UOB, suggests that while NZD held below the 0.6555/60 resistance, the sharp drop is still holding above the major 0.6410 support.

    Key Quotes

    “NZD has to break clearly below this level to indicate the start of a fresh bearish phase. Overall, this pair is expected to remain under pressure unless it can reclaim 0.6530 from here in the next few days.

    Alongside this view, one may consider any of the following:

    1. Sell NZD/USD AFTER a break below 0.6410

    - near term target 0.6348/0.6300

    2. Sell 1-mth 0.6530 NZD/USD call to receive 0.82%

    - works well for neutral to bearish NZD/USD
    - profits limited to premium received; will incur losses above 0.6583 (breakeven rate) on expiry.”
    For more information, read our latest forex news.

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