NZD/USD potential test of 0.7300 – UOB

NZD/USD could advance to the 0.7300 area in the next 1-3 weeks, suggested strategists at UOB Group.

Key Quotes

“The expected up-move in NZD/USD was stronger than anticipated as the break of the strong 0.7225 resistance led to a quick rise to an overnight high of 0.7240 (before extending further to hit 0.7265 during Sydney hours). The rally appears to be running ahead of itself and while a move above 0.7265 would not be surprising, the next major resistance at 0.7300 is likely out of reach, at least for today”.

“NZD burst above the strong 0.7250 resistance (high of 0.7265 at the time of writing) and the 2-week bullish phase appears to have room to extend further to 0.7300. Overall, the outlook for NZD is deemed as bullish until the trailing stop-loss at 0.7150 is taken out (adjusted higher from 0.7110)”.