NZD/USD bullish above 0.7055 – UOB

FX Strategists at UOB Group noted the near-term outlook for the Kiwi dollar could shift to bullish on a close above 0.7055.

Key Quotes

“NZD dipped to a low of 0.6955 before rebounding strongly to move above the strong 0.7020 resistance (overnight high of 0.7036). There appears to be scope for another leg higher towards 0.7055/60 before a more sustained pullback can be expected. On the downside, only a move below 0.6980 would indicate that the immediate upward pressure has eased (next support is at the 0.6955 low)”.

“While NZD moved above the strong 0.7020 resistance, the short-term price action is extremely overbought and only a daily closing above 0.7055 would indicate the start of a sustained up-move. Such a scenario would not be surprising as long as the support at 0.6955 is intact”.