In opinion of FX Strategists at UOB Group, NZD/USD keeps the positive view for the time being.
Key Quotes
24-hour view: “Yesterday, we held the view that ‘there is room for NZD to edge above yesterday’s 0.6779 peak but the major resistance at 0.6800 is likely out of reach’. Our view was not wrong as NZD rose to a high of 0.6789 before trading mostly sideways. Momentum indicators are turning neutral and for today, NZD is likely to trade sideways between 0.6740 and 0.6790.”
Next 1-3 weeks: “There is not much to add to Monday’s (31 Aug, spot at 0.6735) update. As highlighted, ‘the outlook for NZD is still clearly positive even though overbought conditions suggest the major resistance at 0.6800 may not come into the picture so soon’. In other words, NZD could consolidate for another 1 to 2 days first before mounting the next leg higher to test 0.6800. The next resistance above 0.6800 is at 0.6840.On the downside, the ‘strong support’ level has moved higher to 0.6660 from 0.6635.”
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