NZD/USD bullish above 0.7405 – UOB

FX Strategists at UOB Group argued that the pair should shift to a bullish outlook on a close above 0.7405.

Key Quotes

“The whipsaw in NZD yesterday was clearly unexpected. The sharp drop to a low of 0.7261 and the subsequent rapid swing higher that edged above last week’s 0.7369 high has resulted in a mixed outlook (high has been 0.7373)”.

“The strong daily closing lends a positive note to this pair but we are not convinced that any further up-move can be sustained”.

“We prefer to stay neutral for now and wait for a NY closing above 0.7405 before turning bullish. The odds for such a move are not high at this stage but would continue to increase as long as this pair can continue to hold above 0.7300 in the next few days”.