NZD/USD: Chance of breaking above 0.6030 – UOB Group
New Zealand Dollar (NZD) could break above 0.6030 vs US Dollar (USD) but might not be able to maintain a foothold above this level; 0.6060 is probably out of reach. In the longer run, NZD is likely to trade with an upside bias to 0.6030, with scope to extend further to 0.6060, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
0.6060 is probably out of reach
24-HOUR VIEW: "We expected NZD to 'trade in a range between 0.5930 and 0.5980' yesterday. We were incorrect as NZD soared and closed on a strong note at 0.6013 (+0.77%). The rapid increase in momentum could lead to NZD breaking above last month’s high, near 0.6030. However, as conditions are overbought, NZD might not be able to maintain a foothold above this level. The next resistance at 0.6060 is probably out of reach. Support is at 0.6000; a breach of 0.5980 would suggest the current upward pressure has eased."
1-3 WEEKS VIEW: "We indicated yesterday (06 May, spot at 0.5955) that 'for the time being, we expect NZD to trade in a 0.5890/0.6005 range.' We added, 'Looking ahead, provided that NZD does not break clearly below 0.5890, there is a chance for it to retest last month’s high, near 0.6030.' NZD subsequently soared and rose above 0.6005, reaching a high of 0.6013. There has been a rapid increase in short-term momentum, and this will likely lead to NZD rising to 0.6030, with scope to extend further to 0.6060. For the upside bias to hold, NZD must hold above the ‘strong support’ level, currently at 0.5950."
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FXStreet Insights Team
FXStreet
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