NZD/USD: Likely to trade in a range between 0.6075 and 0.6120 – UOB Group
New Zealand Dollar (NZD) is likely to trade in a range between 0.6075 and 0.6120 against US Dollar (USD). In the longer run, NZD could continue to strengthen, but it must first break and hold above 0.6120, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
NZD could continue to strengthen
24-HOUR VIEW: "Two days ago, NZD soared to a high of 0.6090. Yesterday, when NZD was at 0.6090, we stated that 'while NZD could continue to rise, deeply overbought conditions suggest that the next resistance at 0.6120 is likely out of reach for now.' Our directional call was correct,
but NZD rose to a high of 0.6120 before pulling back. Conditions remain overbought. This, combined with slowing momentum, suggests NZD is likely to trade in a range today, most likely between 0.6075 and 0.6120."
1-3 WEEKS VIEW: "Yesterday (01 Jul, spot at 0.6090), we highlighted that 'after breaking clearly above 0.6095, NZD could strengthen further toward 0.6120.' We were not wrong, but we did not quite expect NZD to test 0.6120 so soon. While NZD may continue to rise, it must break and hold above 0.6120 before a move to 0.6145 can be expected. On the downside, should NZD break below 0.6055 (‘strong support’ level previously at 0.6040), it would mean that the NZD strength from late last week has run its course."
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FXStreet Insights Team
FXStreet
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