NZD/USD outlook shifted to neutral – UOB
|FX Strategists at UOB Group shifted their stance on the Kiwi Dollar to neutral from bearish, noting there is room for a test of the 0.72 handle in the near term.
Key Quotes
24-hour view: “Expectation for NZD to trade sideways was wrong as this pair rose to hit a high of 0.7146. Despite the pull-back from the high, the undertone is still firm and a move towards 0.7160 seems likely. On the downside, 0.7100 is a strong support but only a move back below 0.7080 would indicate that the current upward pressure has eased”.
Next 1-3 weeks: “Our recent bearish expectation was proven wrong quickly as NZD rose above the 0.7140 stop-loss (overnight high of 0.7146). While the outlook for this pair is deemed as neutral now, the current rebound has room to extend higher to 0.7200. At this stage, a sustained move above this level seems unlikely. On the downside, only a move back below 0.7065 would indicate that the current mild upward pressure has eased”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.