NZD/USD further rangebound likely – UOB

In view of FX Strategists at UOB Group, the Kiwi Dollar is poised for further consolidation in the next weeks, likely between 0.7490 and 0.7550.

Key Quotes

“While we expected NZD to ‘drift lower to 0.7400’, the explosive burst higher from a low of 0.7405 that took out several strong resistances along the way was clearly unexpected (overnight high of 0.7529). Further NZD strength would not be surprising in the days ahead but the current rally appears to be over-extended. This pair is more likely to consolidate its gain and trade sideways, likely between 0.7490 and 0.7550”.

“The bullish phase that started on Monday is working out well as the overnight high of 0.7529 came within one pip of our immediate target of 0.7530. Those who entered long at the suggested buy level of 0.7415 should look to exit half of their position at the current level of 0.7525. The next level to focus on is at 0.7580. Stop-loss is raised higher to 0.7460 from 0.7375”.