The upside momentum in NZD/USD could extend to the 0.6970 zone in the next weeks, noted FX Strategists at UOB Group.
24-hour view: “NZD closed on a strong note yesterday (0.6905, +0.86%) and further gains appear likely. That said, overbought conditions suggest that the major resistance at 0.6940 is likely out of reach for now (next resistance is at 0.6970). Support is at 0.6885 followed by 0.6855.”
Next 1-3 weeks: “We have held a positive view in NZD for more than a week now. In our latest update from last Friday (13 Nov, spot at 0.6835), we highlighted that ‘upward momentum has been dented and a break of 0.6800 would indicate the rally in NZD has run its course’. NZD subsequently dipped to a low of 0.6811 before staging a strong advance. The up-move has gained considerable momentum and from here, NZD is likely to advance further to 0.6940, possibly as high as 0.6970. On the downside, a break of 0.6830 (‘strong support’ level previously at 0.6800) would indicate the current NZD strength has run its course.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.