Extra gains lie ahead for NZD/USD on a breakout of the 0.67 mark, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for NZD yesterday was that it ‘could edge above 0.6675 but the major resistance at 0.6700 is unlikely to come under threat’. NZD subsequently rose to a high of 0.6692 before closing on a strong note at 0.6684 (+0.65%). Upward momentum has improved and from here, NZD could crack 0.6700 but the next major resistance at 0.6755 is likely out of reach. Support is at 0.6660 followed by 0.6630.”

Next 1-3 weeks: “We have held the same view since last Wednesday (22 Jul, spot at 0.6640) wherein the ‘break-out of consolidation range has room to run further to 0.6700’. NZD rose to a high of 0.6692 yesterday (27 Jul) before closing on a strong note (0.6684, +0.65%). From here, a break of 0.6700 would not be surprising and would shift the focus to the next major resistance at 0.6755. Only a break of 0.6600 (‘strong support’ level previously at 0.6580) would indicate that the current upward pressure has eased.”