NZD/USD bullish, could extend to 0.7325 – UOB

The research team at UOB Group keeps the bullish note on NZD/USD, while it could attempt a test of 0.7325 in the next weeks.

Key Quotes

“The sharp drop after to an overnight low of 0.7141 was unexpected especially after the strong gains seen on Tuesday. While downward momentum is not exactly very strong, the current pull-back appears to have scope to extend lower. However, 0.7120 is a strong support and a sustained move below this level is not expected”.

“There is no change to the current bullish NZD view. As highlighted previously, while shorter-term indicators are overbought, the current NZD strength has room to extend further to 0.7325. Stop-loss is adjusted higher to 0.7120 from 0.7080”.