NZD/USD poised for extra rangebound – UOB

Pablo Piovano FXStreet

The Kiwi Dollar is seen sidelined vs. the buck in the next weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “While the ‘target’ indicated at 0.7260 yesterday was exceeded, the subsequent sharp and rapid pullback from a high of 0.7263 was not exactly expected. NZD has likely made a short-term top and the current price action is viewed as part of a consolidation phase. In other words, we expect NZD to trade sideways from here, likely within a 0.7180/0.7240 range”.

Next 1-3 weeks: “NZD edged above the key 0.7260 resistance (high of 0.7263) and as mentioned yesterday, a breach of this level would indicate that the 0.7154 low seen earlier this week is a short-term bottom. In other words, the recent mild downward pressure has eased. However, the more than one-month long neutral phase is still intact but NZD is more likely to trade sideways for now, likely between 0.7160 and 0.7300”.

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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