NZD/USD sticks to the consolidative theme – UOB

Pablo Piovano FXStreet

NZD/USD is likely to keep navigating within the 0.6540-0.6710 range in the near-term, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected NZD to advance yesterday but held the view that ‘a break of 0.6670 would come as a surprise’. NZD surprised us as it rose to a high of 0.6673 before easing off quickly. Upward momentum has hardly improved and for today, NZD is likely to consolidate and trade between 0.6620 and 0.6670.”

Next 1-3 weeks: “We highlighted yesterday (03 Aug, spot at 0.6620) that ‘a break of 0.6600 would indicate that NZD has moved into a consolidation phase’. NZD subsequently dropped to 0.6575 before settling on a soft note at 0.6613 (-0.24%). For the next 1 to 2 weeks, NZD is likely to trade sideways, expected to be between 0.6540 and 0.6710. Looking forward, a clear break of 0.6540 would suggest the start of a deeper pullback in NZD.”

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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