NZD/USD: Short-term upside momentum improves – UOB

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, NZD/USD could revisit the area north of the 0.6300 yardstick in the next weeks.

Key Quotes

24-hour view: “NZD dropped to 0.6192 before rising to a high of 0.6261 during NY session. Upward momentum has improved slightly and NZD could advance further. That said, a break of the major resistance at 0.6305 is unlikely (there is another resistance at 0.6275). Support is at 0.6235 but only a breach of 0.6220 would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “Shorter-term upward momentum has improved slightly and NZD could rise towards 0.6305 from here. As upward momentum is not strong, a sustained rise above 0.6305 appears unlikely for now. The current mild upward pressure is intact as long as NZD does not move below the ‘strong support’ level at 0.6195.”