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The outlook on the pair remains neutral in the near term, although a test of 0.6850 appears unlikely, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Strong NZ jobs data sent NZD/USD flying past the major 0.6700 resistance to hit a high of 0.6742. While the rally in NZD could extend further, the up-move is running too fast, too soon and a break above the next resistance at 0.6780 seems unlikely for now. Support is at 0.6720 followed by 0.6700. The latter level is likely strong enough to hold any intraday pullback”.

Next 1-3 weeks: “We have held the same view since last Friday (02 Nov, spot at 0.6645) wherein there is “scope for NZD to test the September’s peak of 0.6700″. However, instead of ‘testing’ this major resistance, the better than expected NZ jobs data sent NZD rocketing to an overnight high of 0.6742. Despite the strong up-move, we still think that it is too soon to expect the start of a bullish reversal. Only a clear break above 0.6850 would indicate that NZD has made a mid to long-term bottom. Meanwhile, further NZD strength is not ruled out but 0.6850 is likely out of reach, at least for the next 1 to 2 weeks (0.6780 is already a strong level). On the downside, the ‘key support’ is currently at 0.6640, up from 0.6565 previously”.