NZD/USD: Downside momentum remains well in place – UOB
|The bearish mood around NZD/USD looks unchanged for the time being, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Yesterday, we highlighted that ‘downward momentum is strong and NZD is likely to weaken further even though the major support at 0.6910 could be just out of reach’. Our view for a weaker NZD was correct but the subsequent weakness exceeded our expectations as NZD cracked 0.6910 and plunged to 0.6861. While the sharp and rapid drop is deeply oversold, there is room for a test of 0.6840 first before stabilization can be expected. On the upside, a break of 0.6915 would indicate that the current weakness has stabilized (minor resistance is at 0.6900).”
Next 1-3 weeks: “We noted yesterday (29 Sep, spot at 0.6950) that ‘rapid increase in downward momentum suggests further NZD weakness is likely’. We added, ‘the next support is at 0.6910 followed by 0.6880’. That said, we did not expect NZD to break both levels so quickly (overnight low of 0.6861). Downward momentum is strong but it remains to be seen if the weakness in NZD could reach the August’s low at 0.6807. The NZD weakness is intact as long as it does not break 0.6980 (‘strong resistance’ level was at 0.7025 yesterday).”
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.