The upside momentum in NZD/USD could now push the cross to, initially, the 0.6885 level ahead of 0.6905, noted FX Strategists at UOB Group.
24-hour view: “We highlighted yesterday that ‘upward momentum has not improved by much’ and we were of the view that ‘the bias is for NZD to head higher to 0.6805’. We did not anticipate the surge in momentum as NZD blew past 0.6805 and soared to 0.6859. Further NZD strength is not ruled but overbought conditions suggest that 0.6900 is likely out of reach for today (there is another resistance at 0.6885). Support is at 0.6830 followed by 0.6805.”
Next 1-3 weeks: “While we noted yesterday (12 Jan, spot at 0.6785) that downward momentum has fizzled out, we expected NZD to trade within a range of 0.6735/0.6835. However, NZD surged above 0.6835 during NY hours (high of 0.6859). The rapid improvement in momentum indicates that NZD could advance further. Resistance is at 0.6885 followed by 0.6905. A breach of 0.6785 (‘strong support’ level) would invalidate our view.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.