UOB Research discusses NZD/USD technical outlook and flags a scope for a sustained recovery above 0.6350 against a break below 0.6255.
"Risk for a strong and sustained recovery has increased. Despite the relatively rapid retreat yesterday, the underlying tone in NZD still appears to be positive. We continue to see chance for a strong and sustained recovery above 0.6350," UOB notes.
"However, a break of 0.6255 (no change in ‘strong support’ level) would indicate that NZD is still trading sideways within a 0.6225/0.6350 range," UOB adds.