NZD/USD could extend the upside to the 0.6690 area – UOB
|The Kiwi dollar is seen advancing to the 0.6690 vs. the greenback in the next weeks, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected a stronger NZD yesterday but the ease by which it took out the strong resistance at 0.6600 came as a surprise. NZD closed on a strong note at 0.6625 and extended its gains after opening this morning. Momentum remains strong and NZD could advance further towards 0.6665. That said, the rapid rise is already overbought and the next resistance at 0.6690 could be just out of reach for now. On the downside, support is at 0.6600 followed by 0.6570. The 0.6544 low seen earlier yesterday is not expected to come into the picture.”
Next 1-3 weeks: “After trading in a relatively quiet manner for several days, NZD popped to a high of 0.6625 before extending its gains this morning. The sudden surge in momentum could lead to further NZD strength towards 0.6690. For now, the probability for a sustained advance above this level is not high. Note that last month’s top near 0.6715 is another solid resistance. Overall, NZD is expected to trade on a firm note as long as it does not move below the ‘strong support’ level at 0.6545 within these few days.”
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