NZD/USD scope for a visit to 0.7435 – UOB

In view of FX Strategists at UOB Group, the Kiwi Dollar could advance towards 0.7435 vs. its American counterpart in the near term.

Key Quotes

24-hour view: “We expected a higher NZD yesterday but were of the view that the strong 0.7365 resistance could be “out of reach”. NZD hit a high of 0.7364 during NY hours, one pip away from the strong resistance. Upward momentum has improved with the subsequent strong daily close and from here, a break of 0.7365 could lead to a quick pop higher to 0.7385/90. Support is at 0.7330 followed by 0.7310”.

Next 1-3 weeks: “While the major 0.7365 resistance is still intact (overnight high of 0.7364), upward momentum has improved with the strong daily close in NY yesterday. The improved momentum has diminished the risk of an interim top and from here, a clear break of 0.7365 would indicate that the current month-long bullish phase has scope to extend further towards 0.7435 (high in September last year). On the downside, we continue to adjust the ‘stop-loss’ level higher to 0.7280 (from 0.7240 previously)”.