NZD/USD looks consolidative above 0.6660 – UOB

Pablo Piovano FXStreet

In view of FX Strategists at UOB Group, the Kiwi Dollar is seen attempting some consolidation above the 0.6660 level in the next weeks.

Key Quotes

24-hour view: “Although our downside target for NZD at 0.6600 (low: 0.6586) was met overnight, the subsequent strong rebound was totally unexpected. Recent range highs at around 0.6655/60 may come into focus today though it is probably too early to call for a sustained recovery beyond which. On the other hand, supports are at 0.6605 and 0.6590.”

Next 1-3 weeks: “Our previous rhetoric (06 Jan, spot at 0.6655) was that “NZD has found a short-term top and the current pull-back could test 0.6590”. Overnight, NZD touched as low as 0.6586. However, the subsequently strong recovery back above 0.6600 indicated a “rejection” of the key level. What is means is that while the next direction is still for a lower NZD, in the coming sessions NZD may first consolidate in a small range above 0.6600 first. Rallies are likely to be limited to 0.6650 while supports are at 0.6600 and 0.6590.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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