FX Strategists at UOB Group see NZD/USD could drop to the 0.6240 region if it clears 0.6270 in the near-term.
24-hour view: “Our expectation that NZD ‘could try to break the strong 0.6300 support’ was proven right as it dropped to an overnight low of 0.6287. The break of the strong 0.6300 level suggests there is room for further weakness towards 0.6270. The next support at 0.6240 is not expected to come into the picture. Resistance is at 0.6310 followed by 0.6325.”
Next 1-3 weeks: “The 0.6270 level that we first highlighted last Friday (21 Feb, spot 0.6330) appears to be within reach. While the decline is severely oversold, a break of 0.6270 would suggest NZD could weaken further to 0.6240, possibly revisiting last year’s low at 0.6204. All in, only a move back above 0.6330 (‘strong resistance’ level previously at 0.6380) would indicate the current weakness in NZD has stabilized.”
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