NZD/USD tough barrier lies at 0.7350 – UOB

FX Strategists at UOB Group remain neutral on the Kiwi Dollar and noted the strong resistance level in the mid-0.7300s.

Key Quotes

“In line with expectation, NZD moved higher but the advance was checked by the strong 0.7330 resistance (high of 0.7331). From the high, NZD dropped sharply to hit a low of 0.7276 before swinging higher. The upswing from the low appears to have scope to test 0.7330 again but the next resistance at 0.7350 is unlikely to come into the picture for now. Support is at 0.7290 ahead of 0.7270”.

“While the undertone for NZD is improving, only a clear break above the major 0.7350 resistance would indicate that this pair has moved back into a bullish phase again. The odds for such a move are not very high at this stage but would continue to improve as long as NZD can hold above 0.7270 in the next few days”.