NZD/USD: Set to test the 0.5900 level – UOB Group
|As long as 0.5950 is not breached, the New Zealand Dollar (NZD) could test the 0.5900 level before the risk of a rebound increases, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
NZD moves towards 0.5900
24-HOUR VIEW: “When NZD was trading at 0.5950 yesterday, we stated that ‘as long as 0.5980 is not breached, NZD could weaken further.’ We added, ‘given the oversold conditions, the significant support level at 0.5900 is highly unlikely to come under threat.’ Our view was correct, as NZD fell to a low of 0.5914. Downward momentum has slowed to an extent, but today, as long as 0.5950 is not breached (minor resistance is at 0.5935), NZD could test the 0.5900 level before the risk of a rebound increases.”
1-3 WEEKS VIEW: “Our update from yesterday (24 Jul, spot at 0.5950) is still valid. As highlighted, downward momentum remains strong, and the next level to watch is 0.5900. On the upside, if NZD breaks above 0.5980 (‘strong resistance’ level was at 0.6000 yesterday), it would mean that the weakness that started in the middle of last week has stabilised. Looking ahead, the next support below 0.5900 is at 0.5875.”
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