NZD/USD upside could test 0.7485 – UOB

In opinion of the research team at UOB Group, NZD/USD could extend its bullish momentum to the 0.7480 area in the next weeks.

Key Quotes

“NZD spiked to a high of 0.7378 in late-NY but the subsequent rapid pull-back suggests limited upside risk for today. A retest of 0.7375/80 would not be surprising but 0.7410 is expected to hold for NZD to move back lower towards 0.7315/20”.

“The rebound from last week’s 0.7235 low has been more robust and resilient than expected. While the near-term outlook is deemed as neutral, the current recovery could extend higher to test the 0.7485 high seen earlier this month (0.7410 is acting as a strong intervening resistance). At this stage, a sustained move above this level appears unlikely”.

“Overall, the current positive undertone for NZD is intact unless there is a move back below 0.7280 within the next few days”.