NZD/USD: Chance to test the 0.6070 level before levelling off – UOB Group
New Zealand Dollar (NZD) may test the 0.6070 level before levelling off against US Dollar (USD); the major resistance at 0.6095 is likely out of reach. In the longer run, upward momentum remains largely unchanged, but there is a chance for NZD to test 0.6095, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The major resistance at 0.6095 is likely out of reach
24-HOUR VIEW: "Yesterday, we held the view that 'the current price movements are likely part of a 0.6000/0.6045 range trading phase.' Our view was incorrect, as NZD rose to a high of 0.6066. While there has been no significant increase in momentum, NZD may test the 0.6070 level before levelling off. The major resistance at 0.6095 is likely out of reach. Support levels are at 0.6035 and 0.6020."
1-3 WEEKS VIEW: "We revised our NZD view to positive last Tuesday (03 Jun, spot at 0.6040), indicating that 'the rapid buildup in upward momentum indicates further NZD strength, and the level to monitor is 0.6095.' After NZD rose to 0.6088, we highlighted last Friday (06 Jun, spot at 0.6045) that upward momentum remains largely unchanged, but as long as 0.5985 (‘strong support’ level) is not breached, there is a chance for NZD to test 0.6095.' We continue to hold the same view, but we are revising the ‘strong support’ level to 0.6000 from 0.5985."
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FXStreet Insights Team
FXStreet
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