NZD/USD: Upside bias intact above 0.6145 – UOB

According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, the positive outlook for NZD/USD remains unchanged above the 0.6145 level for the time being.

Key Quotes

24-hour view: “We expected NZD to edge higher yesterday but we were of the view that it ‘is unlikely to break the major resistance at 0.6200’. However, NZD took out 0.6200 and surged to 0.6250. Upward momentum is strong and we expect NZD to rise further. That said, overbought conditions suggest 0.6300 could be out of reach today. Support is at 0.6220, followed by 0.6190.”

Next 1-3 weeks: “Our latest narrative was from last Friday (18 Nov, spot at 0.6135) where NZD is likely to consolidate and trade within a range of 0.6035/0.6200. Yesterday (23 Nov), NZD surged above 0.6200. The price actions indicate that the consolidation phase has ended. In other words, we anticipate NZD gains from here, likely to 0.6200, possibly 0.6240. The upside risk is intact as long as NZD does not move below 0.6145 (‘strong support’ level).”