NZD/USD: A test of 0.6100 emerges on the horizon – UOB
|In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, NZD/USD could advance to the 0.6100 region in the short-term horizon.
Key Quotes
24-hour view: Yesterday, we expected NZD to edge higher to 0.6020 before easing. We also expected the major resistance at 0.6055 not to come into view. NZD rose above 0.6020 but did not ease; neither did it reach 0.6055 (high has been 0.6044). In view of the improved momentum, NZD is likely to break above 0.6055. This time around, the next major resistance at 0.6100 is likely out of reach for now. Support is at 0.6020, followed by 0.6000.
Next 1-3 weeks: Our most recent narrative was from last Wednesday (15 Nov, spot at 0.6000), wherein while NZD “is likely to strengthen further, it has to break clearly above 0.6055 before an advance to 0.6100 is likely.” Yesterday (20 Nov), NZD rose to a high of 0.6044. The increase in momentum suggests that a break of 0.6055 will not be surprising. As indicated, a breach of this level is likely to lead to further advance to 0.6100. To keep the momentum going, NZD must stay above 0.5970 (‘strong support’) level previously at 0.5920.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.