NZD/USD: Any advance is likely part of a higher range of 0.5885/0.5935 – UOB Group
|Scope for New Zealand Dollar (NZD) to rise further, but any advance is likely part of a higher range of 0.5885/0.5935. In the longer run, slowdown in momentum indicates that the odds of NZD reaching 0.5845 are low, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Odds of NZD reaching 0.5845 are low
24-HOUR VIEW: "After dipping to a low of 0.5857 last Friday, NZD lifted off and rose, reaching a high of 0.5929. NZD eased from the high to close at 0.5919 (+0.49%). Although there is scope for NZD to rise further today, overbought conditions indicate that any advance is likely part of a higher range of 0.5885/0.5935. In other words, NZD is unlikely to break clearly above 0.5935."
1-3 WEEKS VIEW: "In our latest narrative last Thursday (31 Jul, spot at 0.5905), we expected NZD to 'decline further to 0.5885, potentially reaching 0.5845.' We stated that 'the weakness is intact as long as NZD holds below the ‘strong resistance’ at 0.5960.' After dropping to a low of 0.5857 on Friday, NZD then rose to a high of 0.5929. While our ‘strong resistance’ level at 0.5960 has not been breached yet, the slowdown in momentum indicates that the odds of NZD reaching 0.5845 are low."
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.