NZD/USD bullish, could test 0.7180 – UOB

FX Strategists at UOB Group have shifted the NZD/USD outlook to bullish and see a potential test of the 0.7180 area in the near term.

Key Quotes

“NZD surged to a high of 0.7144 but the up-move was shortlived. Despite the pull-back from the high, the undertone for this pair is still positive. From here, a move above the 0.7144 high would not be surprising but the strong 0.7180 resistance is likely out of reach for now”.

“As noted yesterday, a break above 0.7100/05 would shift the neutral outlook for NZD to bullish. Shorter-term indicators are overbought but there appears to be room for extension to 0.7180 (with a stop-loss at 0.7020). At current level, the reward to risk does not appear to be that attractive and those looking to go long may like to wait for a dip closer to 0.7060/70”.