NZD/USD bullish above 0.7350 – UOB

FX Strategists at UOB Group noted the Kiwi Dollar should shift its stance to bullish on a close above 0.7350.

Key Quotes

“We indicated last Friday that "upswing from the low appears to have scope to test 0.7330 but the next resistance at 0.7350 is unlikely to come into the picture for now". NZD took out 0.7330 with ease but dropped quickly from a high of 0.7347. Despite the pullback, the undertone is still positive and from here, a move above 0.7350 would not be surprising but the next resistance at 0.7375 is likely out of reach. Support is at 0.7310 followed by 0.7290”.

“The undertone for NZD continues to improve and from here, a NY closing above 0.7350 would suggest that this pair has moved back into a bullish phase. This scenario would not be surprising as long as the key support at 0.7290 is not taken out in the next few days”.