NZD/USD: Any advance is unlikely to threaten this week’s high, near 0.6055 – UOB Group
New Zealand Dollar (NZD) could edge higher against US Dollar (USD), but any advance is unlikely to threaten this week’s high, near 0.6055. In the longer run, rapid buildup in upward momentum indicates further NZD strength; the level to monitor is 0.6095, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Rapid buildup in upward momentum indicates further NZD strength
24-HOUR VIEW: "We noted yesterday that NZD 'appears to have entered a consolidation phase, and today, we expect it to trade between 0.5985 and 0.6030.' NZD then traded in a higher range of 0.5995/0.6039, closing on a firm note at 0.6028 (+0.28%). Today, NZD could edge higher, but barring a sudden surge in momentum, any advance is unlikely to threaten this week’s high, near 0.6055. Support levels are at 0.6010 and 0.5995."
1-3 WEEKS VIEW: "We turned positive in NZD two days ago (03 Jun, spot at 0.6040). We indicated that 'the level to monitor is 0.6095.' While there has been no further increase in upward momentum, our view remains unchanged for now. All in all, only a breach of 0.5970 (no change in ‘strong support’ level) would mean that the buildup in momentum has faded."
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FXStreet Insights Team
FXStreet
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