NZD/USD: Unlikely to reach 0.5960 for now – UOB Group
Upward momentum is building, albeit tentatively. The New Zealand Dollar (NZD) is likely to edge higher, but is unlikely to reach 0.5960 for now. In the longer run, provided that NZD remains above 0.5850, it could rise gradually to 0.5960, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
NZD can rise gradually to 0.5960
24-HOUR VIEW: “Yesterday, we expected NZD to trade in a 0.5860/0.5910 range. It then traded between 0.5876 and 0.5913, closing on a firm note at 0.5911, higher by 0.29% for the day. Upward momentum appears to be building, albeit tentatively. Today, NZD is likely to edge higher. As momentum is not strong, any advance is unlikely to reach 0.5960 for now (there is another resistance level at 0.5940). Support is at 0.5895; a breach of 0.5875 would mean that the buildup in momentum has eased.”
1-3 WEEKS VIEW: “After holding a negative view in NZD since the middle of last week, we highlighted yesterday that ‘slowdown in momentum indicates that 0.5775 is probably out of reach.’ In NY trade, NZD rose to 0.5913. Downward momentum has faded. Upward momentum is beginning to build. From here, provided that NZD remains above 0.5850, it could rise gradually to 0.5960.”