NZD/USD overbought, could still test 0.7180 – UOB

In opinion of FX Strategists at UOB Group, NZD/USD keeps its bullish stance and could attempt a visit to 0.7180 in the short term.

Key Quotes

“As noted last Friday, only a move below 0.7050 would indicate that a temporary top is in place. NZD touched a low of 0.7072 but rebounded quickly. The recovery appears to have scope to extend higher but the major 0.7180 resistance is likely out of reach for now”.

“We turned bullish NZD last Friday and there is no change to the view. The suggested buying level of 0.7060/70 was not met as NZD rebounded from a low of 0.7072. Shorter-term momentum has waned somewhat and another dip towards

0.7060/70 would not be surprising”.