NZD/USD risks extra losses below 0.6960 – UOB
|Prospects for further decline in NZD/USD are expected to gain traction on a breach of 0.6960, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday that ‘the decline is deeply oversold and NZD is unlikely to weaken much further’ and we expected NZD to ‘trade between 0.6975 and 0.7020’. However, NZD dipped to 0.6965 before recovering. While downward momentum has barely improved, there is room for NZD to test 0.6960 first before a more robust recovery can be expected. The next support at 0.6940 is unlikely to come into the picture. Resistance is at 0.7005 followed by 0.7025.”
Next 1-3 weeks: “We have expected NZD to ‘trade between 0.6960 and 0.7105’ since last Thursday (24 Jun, spot at 0.7045). Yesterday (30 Jun, spot at 0.6995), we highlighted that ‘downward momentum is beginning to improve but NZD has to close below 0.6960 before a sustained decline can be expected’. There is no change in our view as NZD dropped to an overnight low of 0.6965. All in, the risk of a sustained decline is intact as long as NZD does not move above 0.7040 (‘strong resistance’ level was at 0.7055 yesterday). Looking ahead, the next support below 0.6960 is at 0.6940 followed by 0.6920.”
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.