NZD/USD eyes a test of 0.6150 – UOB

Further upside in NZD/USD could test the 0.6150 area in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD did not do much yesterday as it traded between 0.5987 and 0.6059, narrower than our expected range of 0.5950/0.6080. The price action offers no fresh clues and for today, NZD is expected to trade between 0.5970 and 0.6080.”

Next 1-3 weeks: “The recent high volatility decreased rapidly as NZD posted a daily range of 72 pips yesterday (between 0.5987 and 0.6059), the smallest 1-day range since the beginning of this month. While upward momentum is showing signs of stalling, we continue to see chance for the current recovery in NZD to extend to 0.6150. That said, the odds for a clear break of this level are not high. On the downside, a break of 0.5880 (no change in ‘strong support’ level) would indicate that the current upward pressure has eased.”