NZD/USD: Major resistance at 0.5790 is unlikely to come under threat – UOB Group

New Zealand Dollar (NZD) could test 0.5755 vs US Dollar (USD) before levelling off; the major resistance at 0.5790 is unlikely to come under threat. In the longer run, price action suggests further NZD strength, potentially to 0.5790, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Price action suggests further NZD strength

24-HOUR VIEW: "We did not anticipate the strong rally in NZD that sent it to a high of 0.5738 (we were expecting range trading). Although the rapid rise appears to be overdone, NZD could test 0.5755 before levelling off. The major resistance at 0.5790 is unlikely to come under threat. Support is at 0.5715; a breach of 0.5690 would suggest NZD is likely to trade in a range instead of rising further."

1-3 WEEKS VIEW: "Our most recent narrative was from last Tuesday (11 Feb, spot at 0.5640), wherein 'for the time being, NZD is likely to trade in a range between 0.5595 and 0.5720.' After trading in a range for a few days, NZD lifted off last Friday and soared to 0.5738. The price action suggests further NZD strength, potentially to 0.5790. To sustain the buildup in momentum, NZD must remain above the ‘strong support’ level, currently at 0.5665."