NZD/USD still faces solid resistance around 0.7320 – UOB
|According to FX Strategists at UOB Group, further upside in NZD/USD is likely to meet strong hurdle around the 0.7320 area in the next weeks.
Key Quotes
24-hour view: “Our expectation for NZD to ‘test the major support at 0.7205’ was incorrect as it rose to a high of 0.7282. Despite the advance, upward momentum has barely improved and NZD is unlikely to strengthen much further. For today, NZD is more likely to trade sideways between 0.7240 and 0.7290.”
Next 1-3 weeks: “We highlighted yesterday (31 May, spot at 0.7235) that ‘a breach of 0.7205 would indicate that the current upward pressure has eased’. There is no change in our view for now. While the risk remains on the upside, lackluster momentum suggests that any advance in NZD is likely to struggle to move clearly above 0.7320.”
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.