NZD/USD faces further upside near-term – UOB

NZD/USD is expected to meet the next resistance around 0.7380, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘strong momentum is likely to lead to further NZD strength to 0.7350’. Our expectation did not materialize as NZD only touched 0.7343. Waning upward momentum coupled with overbought conditions suggests that NZD is unlikely to strengthen further. That said, it is too early to expect a sustained pullback. All in, NZD is expected to consolidate at these higher levels, expected to be within a 0.7280/0.7340 range.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (22 Feb, spot at 0.7320). As highlighted, NZD ‘is likely to continue to move higher’ and ‘the next resistance is at 0.7380’. Overbought shorter-term conditions could lead to a couple of days of consolidation first but the current positive outlook is deemed intact as long as the ‘strong support’ level at 0.7230 is not breached.”