NZD/USD: a test of 0.6235 remains on the cards – UOB


The Kiwi Dollar keeps facing downside risks to the 0.6230 region in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Despite a recovery overnight, NZD was largely within our expected 0.6420/0.6505 range. Today, it is likely that NZD may grind higher but gains may be limited at 0.6485. Support is expected at 0.6430”.

Next 1-3 weeks: “On Wed (7-Aug), the key support at 0.6500 was decisively taken out and NZD tumbled to a low of 0.6378. With the move, it immediately shifts the focus to the next ‘key supports’ of 0.6348 (last reached in Jan 2016) and 0.6235 (Sep 2015’s low). At the current juncture, although the ‘downside bias’ remains, downside momentum is still not strong enough to argue for a fast move towards those stated levels. We expect stiff resistances at both 0.6480 and 0.6500 and only a recovery above 0.6530 would indicate that downside pressures have eased”.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Ends five-day losing streak, but bias remains bearish

EUR/USD gained 0.19% on Wednesday, snapping a five-day losing streak, however, the outlook remains bearish as the pair is trading well below the former support-turned-resistance of 1.1162 (Aug. 12 low).

EUR/USD News

GBP/USD: Teasing inverse head-and-shoulders breakout

GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time. An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.

GBP/USD News

USD/JPY: Bulls regain 106.50 amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resumes the bullish momentum in Wednesday's Asian trading and regains the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

Gold News

FOMC Minutes July 30-31 Meeting Preview: The Fed vs the markets

The Fed policy that switched to neutral in Jan completed the circle last month with first decrease in the base rate in more than a decade from a 2.50% upper target to 2.25%. Markets expect a second cut at the September 18th FOMC.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •