NZD/USD may not be able to break above 0.6080 – UOB Group
Risk remains on the upside, but with no clear increase in momentum, New Zealand Dollar (NZD) may not be able to break above 0.6080 against US Dollar (USD). 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.
Upward momentum remains largely unchanged
24-HOUR VIEW: "The following are excerpts from our update yesterday: 'NZD could edge higher, but barring a sudden surge in momentum, any advance is unlikely to threaten this week’s high, near 0.6055.' The advance exceeded our expectations, as instead of edging higher, NZD jumped to a high of 0.6080. It pulled back from the high to close at 0.6038 (+0.17%). The risk remains on the upside today, but with no clear increase in upward momentum, NZD may not be able to break above 0.6080. The significant resistance at 0.6095 is unlikely to come under threat. Support is at 0.6025, followed by 0.6005."
1-3 WEEKS VIEW: "Three days ago (03 Jun, spot at 0.6040), we indicated that 'rapid buildup in upward momentum indicates further NZD strength, and the level to monitor is 0.6095.' Yesterday, NZD rose to 0.6080. Upward momentum remains largely unchanged, but as long as 0.5985 (‘strong support’ level previously at 0.5970) is not breached, there is a chance for NZD to test 0.6095."
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FXStreet Insights Team
FXStreet
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