NZD/USD trapped within 0.7115-0.7260 – UOB

NZD/USD now moved into the 0.7115-0.7260 range, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that the ‘recovery has scope to extend higher but any advance is likely limited to a test of 0.7220’. While NZD advanced as expected, it did not quite test 0.7220 (high of 0.7216). Momentum indicators are turning neutral and NZD is likely to trade sideways for today, expected to be between 0.7175 and 0.7220.”

Next 1-3 weeks: “There is no change to our view as highlighted last Thursday (11 Mar, spot at 0.7190). As indicated, NZD is likely to trade within a 0.7115/0.7260 range for now. The underlying tone has improved somewhat but any advance is likely to struggle to move above the major resistance at 0.7260.”