NZD/USD: Likely to consolidate between 0.5985 and 0.6030 – UOB Group
|New Zealand Dollar (NZD) is likely to consolidate between 0.5985 and 0.6030. In the longer run, rapid buildup in upward momentum indicates further NZD strength; the level to monitor is 0.6095, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Rapid buildup in upward momentum indicates further NZD strength
24-HOUR VIEW: "Following the rally in NZD to 0.6043 two days ago, we stated yesterday that 'while deeply overbought, the rally in NZD could extend to 0.6070 before a pause can be expected.' However, after rising to 0.6054, NZD pulled back to 0.5988 before settling at 0.6000 (-0.65%). NZD appears to have entered a consolidation phase, and today, we expect it to trade between 0.5985 and 0.6030."
1-3 WEEKS VIEW: "We revised our NZD outlook to positive yesterday (03 Jun, spot at 0.6040). We indicated the following: 'The rapid buildup in momentum indicates further NZD strength. The level to monitor is 0.6095. We will maintain our view of a stronger NZD as long as 0.5970 is not breached.' While upward momentum has slowed somewhat with the subsequent pullback to 0.5988, only a breach of 0.5970 would indicate that our view was incorrect."
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.