NZD/USD: Upward momentum remains largely unchanged – UOB Group
|Current price movements are likely part of a 0.6000/0.6045 range trading phase. In the longer run, upward momentum remains largely unchanged, but there is a chance for NZD to test 0.6095, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Chance for NZD to test 0.6095
24-HOUR VIEW: "After NZD rose and exceeded our expectations last Thursday, we indicated on Friday that 'the risk remains on the upside today, but with no clear increase in upward momentum, NZD may not be able to break above 0.6080.' However, there was no follow-through on the upside, as NZD traded in a 0.6008/0.6050 range. Momentum indicators are turning flat, and the current price movements are likely part of a 0.6000/0.6045 range trading phase."
1-3 WEEKS VIEW: "We revised our NZD view to positive last Tuesday (03 Jun, spot at 0.6040), indicating that 'rapid buildup in upward momentum indicates further NZD strength, and the level to monitor is 0.6095.' After NZD rose to 0.6088, we highlighted last Friday (06 Jun, spot at 0.6045) that upward momentum remains largely unchanged, but as long as 0.5985 (‘strong support’ level) is not breached, there is a chance for NZD to test 0.6095.' We continue to hold the same view."
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