NZD/USD neutral outlook stays unchanged – UOB

NZD/USD is expected to remain within a 0.7000/0.7150 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

“While the major 0.7190 resistance capped as expected, the sharp drop from the high of 0.7170 was surprising. The down-move appears to be running ahead of itself but another leg lower to test 0.7050 support seems likely”.

“While NZD rallied strongly yesterday and touched a high of 0.7170, it surrendered most of its gains by end of the day. As noted, only a daily closing above 0.7150 would shift the outlook for NZD to bullish and this has clearly not happened. To put it another way, the outlook for NZD remains neutral for now and we are back into a 0.7000/0.7150 sideways trading range.