NZD/USD could advance further and test 0.7280 – UOB

The positive momentum in NZD/USD could lift the pair to the 0.7280 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for NZD to test 0.7225 first before easing off’. While NZD subsequently rose to 0.7232, it closed on a firm note at 0.7220. Upward momentum has improved and the risk is for NZD to move higher. That said, 0.7250 is a solid resistance and NZD may not be able to maintain a foothold above this level. Support is at 0.7200 followed by 0.7185.”

Next 1-3 weeks: “We highlighted last Friday (05 Feb, spot 0.7155) that NZD ‘could trade between 0.7100 and 0.7250 for a period of time’. Since then, shorter-term momentum has improved and a break of 0.7250 would suggest NZD could advance towards the next major resistance at 0.7280. On the downside, a break of 0.7155 would indicate the current upward pressure has eased.”