NZD/USD: A move to 0.6970 remains in the pipeline – UOB

The upside momentum in NZD/USD could extend to the 0.6970 zone in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD closed on a strong note yesterday (0.6905, +0.86%) and further gains appear likely. That said, overbought conditions suggest that the major resistance at 0.6940 is likely out of reach for now (next resistance is at 0.6970). Support is at 0.6885 followed by 0.6855.”

Next 1-3 weeks: “We have held a positive view in NZD for more than a week now. In our latest update from last Friday (13 Nov, spot at 0.6835), we highlighted that ‘upward momentum has been dented and a break of 0.6800 would indicate the rally in NZD has run its course’. NZD subsequently dipped to a low of 0.6811 before staging a strong advance. The up-move has gained considerable momentum and from here, NZD is likely to advance further to 0.6940, possibly as high as 0.6970. On the downside, a break of 0.6830 (‘strong support’ level previously at 0.6800) would indicate the current NZD strength has run its course.”