NZD/USD faces further rangebound near-term – UOB

NZD/USD is seen navigating within the 0.6380 and 0.6530 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we indicated that the ‘rebound in NZD could extend higher but the strong resistance at 0.6490 is unlikely to yield so easily’. Our view was not wrong as NZD rose to 0.6487 before ending the day on a firm note at 0.6477 (+0.34%). Upward momentum has improved and from here, NZD could strengthen further. However, in view of the already overbought conditions, the major 0.6530 resistance is unlikely to come under threat. Support is at 0.6460 followed by 0.6430.”

Next 1-3 weeks: “Yesterday (30 Jun) marked the third time that NZD has tested the 0.6375/0.6385 support zone. The rapid bounce from 0.6386 suggests that NZD is not ready to move below this strong support zone. Note that we previously held the view that “if NZD closes below 0.6380, it could weaken further to 0.6320”. Downward pressure has more or less dissipated and from here, NZD could trade between 0.6380 and 0.6530 for a period.”