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. 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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD in a phase of bearish consolidation around 1.0850, US NFP eyed

With the US dollar bulls taking a breather following the latest upsurge, EUR/USD is licking its wounds ahead of the European open. The spot trades close to the six-day lows reached Thursday at 1.0820, as it awaits the critical US data for the next direction.

EUR/USD News

GBP/USD: Weaker below 1.2400 ahead of UK PMI, US data

GBP/USD bears the burden of broad US dollar strength while waiting for fresh impulse. UK plans to issue coronavirus “immunity passports”. Final reading of the UK’s March PMIs, US jobs report and ISM Non-Manufacturing PMI will be in focus.

GBP/USD News

Forex Today: Coronavirus risks loom, USD bulls take a breather ahead of US Payrolls

The relentless rise in the coronavirus cases world-wide continues to keep the investors on the edge. The US dollar continued to enjoy the safe-haven flows, as the Asian equities turned negative alongside the US stock futures.

Read more

WTI: Depressed below $24.00 as traders fail to cheer hopes for production cut

WTI fails to keep buyers hopeful as fears of coronavirus outbreak renew. China’s Caixin Services PMI came in positive, US President Donald Trump reiterated hopes for Saudi-Russian pact for an oil production cut. US economic docket, virus news will be the key for near-term direction.

Oil News

Gold: Probes monthly resistance trendline above $1,600

Gold struggles between 61.8% Fibonacci retracement and near-term key resistance line. Bullish MACD, sustained trading beyond key supports keep buyers hopeful. 100-day SMA, 38.2% will keep sellers away.

Gold News

Forex MAJORS

Cryptocurrencies

Signatures